2004 Adopted Plan and Budget Summary

2004 PLAN AND BUDGET SUMMARY

Department of Administration Budget and Policy Division

Michael J. Soika Joseph J. Czarnezki Administration Director Budget and Management Director

Budget and Policy Division Staff:

Thomas J. Bell Sandra J. Rotar Jennifer C. Gonda Dore Marie Rozwadowski Patrick J. Hartmann David J. Schroeder Crystal E. Ivy Erick D. W. Shambarger John Ledvina Dennis A. Yaccarino Eric C. Pearson GUIDE TO BUDGET DOCUMENTS

PLAN AND BUDGET SUMMARY

A document containing an overview of economic conditions in Milwaukee; a fiscal summary of the 2004 budget; an economic forecast for Milwaukee; detailed narrative descriptions of each department’s mission, objectives, outcome measures and related activities; and a summary of appropriations by expenditure category. This document is printed annually in proposed and final form as follows: the Proposed Plan and Executive Budget Summary contains the Mayor’s Executive Budget as presented to the Common Council for review. The Plan and Budget Summary contains the budget as adopted by the Common Council.

BUDGET

The official City of Milwaukee line-item budget provides a listing of all appropriation accounts by department and is published after the final budget adoption.

SIX-YEAR CAPITAL PLAN

A presentation of the city’s six year capital program. Includes details on planning, financing, infrastructure, and urban development undertakings involved in the capital plan and is published the spring following budget adoption.

2004 FISCAL OUTLOOK AND STRATEGIC PLAN

A strategic framework that guides policy decisions based on long term strategic goals and objectives.

To obtain copies of the: Proposed Plan and Executive Budget Summary, Plan and Budget Summary, Budget, Six Year Capital Plan and the 2004 Fiscal Outlook and Strategic Plan contact the:

Budget and Policy Division City Hall - Room 307 200 East Wells Street Milwaukee, Wisconsin 53202 (414) 286-3741 (414) 286-5475 (Fax)

Visit the Budget and Management Home Page at: www.ci.mil.wi.us/citygov/doa/bmd/bmd.htm BUDGET AND PLANNING PROCESS

City Strategic Plan

Citywide Objectives Citywide Strategies

Unified Strategic Plans and Budget

Department Objectives Department Strategies Department Performance Measures Department Annual Budget

Annual Budget

Executive Budget

Adopted City Budget

CALENDAR DATE ACTIVITY

January - March Departments Prepare Plans, Objectives, and Performance Measures

Mid-March Departments Receive Budget Materials

May 13* Plans and Budget Requests Due

Mid-June Mayor’s Public Hearings on Plans and Budgets

July - September Mayor’s Executive Plan and Budget Review

September 23** Plan and Budget Submitted to Common Council

Mid-October Legislative Hearings

November 6 and 7 Finance and Personnel Committee Budget Amendment Days

November 14*** Common Council Action on Budget

* Second Tuesday in May ** Legal Deadline September 28 *** Legal Deadline November 14 ELECTED OFFICIALS

MAYOR ...... John O. Norquist

CITY ATTORNEY...... Grant F. Langley

CITY COMPTROLLER ...... W. Martin Morics

CITY TREASURER ...... Wayne F. Whittow

COMMON COUNCIL

PRESIDENT...... Marvin E. Pratt

DISTRICT ALDERPERSON

FIRST...... Marvin E. Pratt SECOND...... Joe Davis Sr. THIRD...... Michael S. D’Amato FOURTH...... Paul A. Henningsen FIFTH...... James A. Bohl, Jr. SIXTH...... Marlene E. Johnson-Odom SEVENTH...... Fredrick G. Gordon EIGHTH...... Robert G. Donovan NINTH...... Donald F. Richards TENTH...... Willie C. Wade ELEVENTH ...... Joseph Dudzik TWELFTH...... Angel Sanchez THIRTEENTH...... Terry L. Witkowski FOURTEENTH...... Suzanne M. Breier FIFTEENTH...... Thomas G. Nardelli SIXTEENTH ...... Michael J. Murphy SEVENTEENTH...... Willie L. Hines

MUNICIPAL JUDGES

BRANCH 1 ...... David Halbrooks

BRANCH 2 ...... Derek C. Mosley

BRANCH 3 ...... James A. Gramling, Jr. TABLE OF CONTENTS

Mayor’s Budget Transmittal Statement...... I

Finance and Personnel Committee Report on the 2004 Adopted City Budget...... VI

Charting the Course for Continued Success ...... 1

Budget Summary Tables

2004 Adopted Budget and Tax Rate Compared to Prior Year ...... 9

Property Tax Profile...... 10

Comparisons by Budget Section Between 2004 Adopted and 2003 Adopted Budgets, Revenues, Tax Levies, and Resulting Changes ...... 11

Property Tax Rate and Levy Comparison-Graphs ...... 14

General City Purposes Spending/Authorized Positions-Graphs...... 15

Change in Positions: 2004 Adopted Budget vs. 2003 Adopted Budget ...... 16

Estimated Full-Time Equivalents by Department (O&M Funded)...... 17

Estimated Direct Labor Hours by Department (O&M Funded)...... 18

Comparison of 2004 Adopted Expenditures and Funding Sources with Prior Years, by Major Budget Sections and Sub-Sections...... 19

Summary of Borrowing Authorizations (Including School Purposes) ...... 24

2003 Salary and Wage Information Used for Budget Purposes ...... 25

School Board Budget (Not Under the Control of the Common Council)...... 27

City of Milwaukee Organization Chart...... 28

City Budget Under the Control of the Common Council

Property Tax Supplemented Funds

A. General City Purposes...... 31 B. Provision for Employee Retirement Funds...... 222 C. Capital Improvements Funds ...... 233 D. City Debt...... 244 E. Delinquent Tax...... 251 F. Common Council Contingent Fund ...... 253 TABLE OF CONTENTS (Continued)

Special Revenue Funds

G. Parking Fund...... 256 H. Grant and Aid Fund ...... 261 I. Economic Development Fund ...... 265 J. Water Works ...... 267 K. Sewer Maintenance Fund...... 276 M. County Delinquent Tax Fund ...... 283

Borrowing Authorizations (General Obligation Bonds or Short-Term Notes)...... 285

Clarification of Intent...... 287

Positions Ordinance and Salary Ordinance ...... 288

Agencies and Funds - Budgets Not Under the Control of the Common Council

Housing Authority of the City of Milwaukee (HACM)...... 68 Redevelopment Authority of the City of Milwaukee (RACM) ...... 70 Milwaukee Economic Development Corporation (MEDC)...... 71 Neighborhood Improvement Development Corporation (NIDC)...... 72

Tax Levy to Rate Conversion Table ...... 289

Basis of Budgeting ...... 290 ALPHABETICAL LISTING

2004 Adopted Budget and Tax Rate Compared to Prior Years...... 9

Administration, Department of (DOA) (Operating Budgets) ...... 33 Annuity Contribution, Employer’s Share ...... 223 Assessor’s Office ...... 45

Basis of Budgeting...... 290 Board of Zoning (Special Purpose Account)...... 206 Borrowing Authorizations...... 285 Borrowing Authorizations, Summary...... 24 Budgets, Revenues, Tax Levies, and Resulting Changes, Comparisons by Budget Section, 2003/2004 ...... 11

Capital Improvements Funds...... 233 Change in Positions: 2004 Adopted vs. 2003 Adopted ...... 16 Charting the Course for Continued Success ...... 1 City Attorney...... 50 City Debt...... 244 City Development, Department of ...... 54 Clarification of Intent...... 287 Common Council City Clerk...... 73 Comptroller ...... 78 Contingent Fund, Common Council ...... 253 County Delinquent Tax Fund...... 283

Deferred Compensation Plan...... 230 Delinquent Tax...... 251 Direct Labor Hours by Department ...... 18

Economic Development Fund (Special Revenue Account) ...... 265 Election Commission ...... 86 Employee Health Care Benefits (Special Purpose Account)...... 203 Employee Relations, Department of (DER) ...... 90 Employes’ Retirement System...... 224 Expenditures and Funding Sources, Comparison of 2004 to Prior Years by Budget Section...... 19

Finance and Personnel Committee Report on 2004 Adopted City Budget ...... VI Fire Department ...... 98 Fringe Benefit Offset ...... 214 Full-Time Equivalents by Department...... 17 Funding Sources, Detailed Revenues for General City Purposes ...... 215

General City Purposes Spending (Graphics) ...... 15 Grant and Aid Fund (Special Revenue Account) ...... 261

Health Department ...... 105 Housing Authority of the City of Milwaukee (HACM)...... 68

Library...... 118 ALPHABETICAL LISTING (Continued)

Mayor’s Budget Transmittal Statement...... I Mayor’s Office ...... 124 Milwaukee Economic Development Corporation (MEDC)...... 71 Municipal Court ...... 129

Neighborhood Services, Department of...... 136 Neighborhood Improvement Development Corporation (NIDC)...... 72

Organization Chart Citywide...... 28

Pensions ...... 222 Police Department...... 142 Policemen’s Annuity and Benefit Fund...... 222 Port of Milwaukee...... 152 Positions Ordinance, Reference...... 288 Property Tax Supplemented Funds – Summary of Expenditures...... 29 Property Tax Profile...... 10 Property Tax Rate and Levy Comparison (Graphics)...... 14 Public Works, Department of Summary...... 156 Administrative Services Division ...... 165 Infrastructure Services Division...... 169 Operations Division (Buildings and Fleet, Forestry, and Sanitation) ...... 184 Parking Fund (Special Revenue Account)...... 256 Sewer Maintenance Fund (Special Revenue Account)...... 276 Water Works (Special Revenue Account)...... 267

Redevelopment Authority of the City of Milwaukee (RACM) ...... 70 Reimbursable Service Advance Fund (Special Purpose Account)...... 201 Retirement Funds, Provision for Employes’...... 222 Revenues, Detailed Listing...... 219

Salary and Wage Information Used for Budget Purposes...... 25 Salary Ordinance, Reference ...... 288 School Board Budget...... 27 Sewer User Charges (Special Purpose Account) ...... 201 Social Security Tax ...... 223 Special Purpose Accounts...... 199 Special Purpose Accounts - Summary...... 208 Special Revenue Funds - Summary ...... 255

Tax Levy to Rate Conversion Table...... 289 Tax Stabilization Fund Withdrawal...... 221 Treasurer, City...... 210

Workers’ Compensation (Special Purpose Account) ...... 202 John O. Norquist

Mayor Budget Transmittal Statement from City of Milwaukee Mayor John O. Norquist

By now, there’s no mystery left in how we budget.

Our budgets are an open book - what you see is what you get.

Call it boring if you want to, but here’s what we do:

• We look for ways to improve city government and run it more efficiently. • We reduce the size of the city workforce. • We hold down spending. • We keep taxes and fees as low as possible. • We maintain good-sized reserves so taxpayers don’t get stuck with surprises down the road.

If you’re like me, you once thought that this kind of responsible budgeting was the norm. It’s what’s expected of public officials. And it’s what our constituents deserve.

But the last few years have taught us that not everybody shares this opinion.

We’ve seen accounting tricks and insider dealing from companies like Enron and WorldCom and learned that those problems don’t stop with the private sector.

Tommy Thompson and Scott McCallum touted themselves as conservative Republicans committed to creating a pro-business tax climate. Instead, they jacked up state spending and piled on new state employees, creating a train wreck that left the state with a $3 billion dollar deficit. Instead of rolling up his sleeves and cutting state government like it needed to be cut, McCallum balanced his first budget by raiding all of the state’s tobacco money. Then for an encore, he proposed eliminating all aid payments to cities. In other words, he left a mess.

Tom Ament was seen as a steady hand who had kept county government on an even keel. Editorials praised him for “honestly trying to meet the county’s diverse … needs while also keeping taxes in check”. But he passed huge pension and sick leave payouts for himself and insiders in his administration that sent the county into major budgetary distress.

Office of the Mayor Scott Walker has the challenge of fixing this mess and he has the right instincts in City Hall wanting to protect taxpayers from the effects of the pension scandal. But to meet 200 East Wells Street a no-tax-increase campaign pledge, last year he cut some budgeting corners - Milwaukee, under funding the pension, overestimating revenues, and draining reserves down Wisconsin to nothing. The results included unexpected park layoffs this summer and other 53202 budget problems that could erupt later. (414) 286-2200 fax (414) 286-3191

I Given how reckless the Thompson-McCallum and Ament administrations were in squandering tax dollars, who can blame taxpayers for being fed up? Who can blame them for calling for relief at every level of government?

In his short time in office, Governor Doyle has demonstrated his character as a budgeter. He recognized that budgeting tricks appear to give taxpayers what they want in the short run, but backfire and hurt taxpayers in the long run. So Governor Doyle cut 2,900 positions from the state’s bloated bureaucracy. This was his first step towards his goal of cutting 12,000 positions and getting state government back to the size it was before Tommy Thompson took office.

He also had the good sense to reject the Republican’s local tax freeze proposal as the political stunt it was. Doyle knew that legislators who proposed the freeze for local government would never do that with state tax collections.

The governor did ask local officials to share in the pain and help the state out of its mess. He proposed big but acceptable cuts in shared revenue - a $9.7 million cut for the City of Milwaukee, far short of the $24 million that Republicans would have bled from the city so they could transfer it to the wealthy communities they represent.

With this budget, we maintain our long term record of keeping levy increases under the rate of inflation. In inflation-adjusted dollars, our property tax levy is $18.7 million smaller now than it was in 1988. The Common Council should be proud of its role in establishing a record of protecting and respecting the taxpayers of this city. It is unmatched by county, state, or federal governments.

In 1988, the county tax levy was $112.8 million compared to the city’s tax levy of $144.5 million for the same year. The county levy has since grown to $219 million in 2003 compared to $199 million for the city. This growth in the county levy occurred despite the addition of a countywide one-half percent sales tax.

Since 1988, we have held our operating spending under the rate of inflation, while the state’s has increased at twice the rate of inflation.

This budget also lowers the tax rate to $9.73 per $1,000 of assessed value - 42 cents less than last year’s rate and $3.36 less than the rate in 1988 when I took office. And there are no increases in the major fees we charge and no increases in parking meter rates.

We found we could adopt a budget responsibly. Here’s how we did it and didn’t do it:

We didn’t short-change the pension system, as the county chose to do in 2003. That just puts off a tax obligation and leaves a big bill for future taxpayers.

Even though our pension system is considered fully funded, we will put $2.5 million into pension reserves again. This is a tough budget year but we will make the same responsible contribution as last year.

We are not draining our reserves. We’re standing by our practice of maintaining our stabilization fund at 5% of general operating expenditures.

II This budget uses the fund as it was intended - to stabilize taxes at a time when the state is in fiscal crisis and we’re having to absorb a major loss of shared revenue.

A responsible withdrawal will leave the fund with an ending balance of about $30 million. That is about $30 million larger than the reserves of the state or county combined.

We’re protecting our debt reserves. With the enthusiastic approval of City Comptroller Wally Morics, we are withdrawing a million less from them than last year.

We’re maintaining our infrastructure with a capital budget slightly higher than last year, including money that will help us plan for a new north side regional library and build a new fire repair shop.

We’re maintaining our traditional $12 million contribution to Milwaukee Public Schools for school buildings.

We’re not overestimating revenues. They are estimated very conservatively in consultation with the Comptroller. You won’t see the city experience the county’s mid-summer park’s budget collapse.

We’re not spinning off any departments or proposing new taxing jurisdictions.

No gimmicks: we’re freezing the levy with responsible cost reductions.

As we absorbed the $9.7 million loss of shared revenue, we had one major factor in our favor: our health care costs came in more than $9 million under projections. If our increase had been more in line with other major employers, freezing the levy responsibly would have been impossible.

Through several rounds of negotiations with unions and several budgets, we have created incentives for them to get out of the expensive fee-for-service plan, where provider choice is unlimited and costs are high. Employees have responded by choosing lower cost plans.

It wasn’t easy to get unions to accept these incentives, but this work is now paying off for taxpayers.

The school board’s health plan is out of control. The county’s is unaffordable. Ours is helping us save money while still providing good health insurance for employees.

Our health care cost increase this year came in at 2% - compared to a 25% increase at the county. To put this budget together, we needed more than just health care savings. We needed more cost cuts in city government. And we’ve made them.

As a result, operating spending in this budget increases less than 2% - well under the rate of inflation. The tax levy in 2004 is actually $18.7 million smaller than the levy in 1988 in inflation adjusted dollars.

III In doing the right thing for taxpayers, we’re not shortchanging employees, however. We’re not reopening labor contracts. We’re not asking employees to work a shorter week.

Our city employees enjoy fair pay and good benefits. They deserve to earn a decent living. But we need to face the fact that our citizens can only afford so much. That is why that number had to go down and why city government must continue to shrink.

We’ve been cutting government for years. Between 1988 and 2003, we cut 750 positions from city government. This budget cuts 351 more positions. By the time these cuts are implemented, our workforce will be 11% smaller.

We’ve worked to minimize layoffs. About 75 of the eliminated positions are currently filled. Some of the affected employees will retire or bump into other positions, but some will actually be laid off.

Fortunately, because of our renewed commitment to a hiring freeze, many of the eliminated positions are already unfilled and layoffs are much smaller than they would have been otherwise.

When you eliminate nearly 351 positions, there is no way to make these cuts invisible. Citizens will notice some changes in how city services are delivered. But I believe they will find these changes acceptable. Under this budget, Milwaukee taxpayers will still be well served by the city. They will just be receiving the government that they can afford.

Holding taxes as low as possible makes sense for other reasons.

First, it sends the right message to the Governor and the legislature at a time when the state is finally reviewing its own budgets. By keeping our spending low while maintaining acceptable service levels, we show the state that we’re responsible stewards of the state revenue they share with us every year.

Second, freezing the levy reduces the long term costs of municipal government for Milwaukee taxpayers. In the short term, having 351 fewer employees on the books saves the city about $15 million per year. In future years, it will help hold down the increases in our employee health care costs. And having 300 fewer people enrolled in our pension system significantly improves its financial stability.

Finally, holding down taxes helps the city thrive. It helps us keep our cost of living competitive, which invites people to live and invest in the city and appreciate the great advantages of urban life.

Our downtown housing market is booming, with 2,040 units added since 1998. The downtown population has increased 77% since 1990.

The hot residential market and re-energized office market are fueling a building boom. We added $301 million in new construction in 2002, according to the State Department of Revenue.

This unprecedented level of investment creates jobs.

IV We’ve done a lot to encourage this renaissance by creating a pro-growth tax climate. When I took office, Milwaukee had the second highest tax rate in the county. That ranking confirmed our reputation for high taxes and acted as a drag on development.

Our tax rate is currently the eighth highest in the county - closely bunched with others near the middle of the pack. At a time when other municipalities have announced their intention to freeze their levies, this budget will again help us stay competitive.

Milwaukee is a great city, a beautiful city and for a long time, people had negative feelings about cities in general - and Milwaukee was no exception.

But that has changed. There is a significant part of the real estate market that wants to live, work, and play in the city. If companies want highly educated and creative tech workers, they need to be in an urban setting. As local real estate broker, Robert Flood told the Journal in explaining why a tech company would choose a downtown site: “If I am a 20-something IT engineer, I want to look at the services and amenities of downtown instead of going out to a cornfield.”

Milwaukee has a rich culture, a tradition of excellence in the workplace and beautiful neighborhoods and a downtown that are gaining confidence every day.

People in Milwaukee are starting to realize that our city is someplace very special. You saw this with Harley Fest and on Martin Luther King Drive and on Lincoln Avenue, Mitchell Street, West Vliet Street and Chavez Drive.

Now we have more work to do. This budget comes at an important time in the city’s history when we need to demonstrate fiscal responsibility to our bond rating agencies, to state legislators and the governor, and most of all to our own taxpayers.

Thank you,

JOHN O. NORQUIST Mayor

THE VALUE OF MILWAUKEE

Milwaukee exists because it possesses natural economic advantages which cause people and businesses to concentrate in large and increasing numbers. As a result of the proximity and connectedness of Milwaukee's diverse people and enterprises, huge benefits flow -- jobs are created, markets are formed and expanded, wealth is created, and surplus wealth leads to culture.

OUR VISION FOR MILWAUKEE

We want Milwaukee to become an even more desirable place to live and work. Our city’s attributes include:

• dynamic and accessible markets gainfully employing citizens;

• safe, strong, and beautiful neighborhoods with well-maintained housing and a healthy environment; and

• a flourishing culture recognized for its arts, recreation, museums, and institutions of education.

MISSION

City government is dedicated to reducing spending while giving residents and businesses the highest quality services possible. The city also works to create local, state, and federal policies (especially transportation, welfare, and education policies) that enhance the natural advantage of Milwaukee. We are committed to:

• protecting citizens and visitors from crime, fire, and other hazards;

• improving the health of residents and their physical environment;

• strengthening the quality and enhancing the value of neighborhoods and housing;

• promoting an economic climate that supports job creation, lasting investment, and economic opportunity;

• furthering land use policies that promote diverse transportation options; and

• fostering an effective educational system that improves educational attainment and promotes job readiness.

2004 PLAN AND BUDGET SUMMARY Charting the Course for Continued Success

The course for change in Milwaukee during 2004 has been charted. A new Mayor will take Figure 1 office, along with a new city government administration. There will be two fewer members City of Milwaukee of the Common Council. A new Fire Chief, ap- Authorized Positions pointed in late 2002, was joined by a new Police Chief in November, 2003. 9,900 9,700 While new leadership will be at the helm of city 9,500 9,300 government, Milwaukee will face the same fun- 9,100 damental challenges: how to provide high 8,900 quality services at the lowest possible cost, while 8,700 recognizing fiscal constraints, so as to make 8,500 8,300 Milwaukee a more attractive place to live, work, 8,100 play and conduct business. 7,900 7,700 7,500 Milwaukee’s record is strong. Taxes and 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 spending have been controlled while core services have been maintained. A solid foundation for continued improvement and development has been established, evidenced by growth in hous- and management have enabled city policymakers to ing opportunities and property values, and by major successfully control taxes and spending. redevelopment projects such as the Park East Corri- dor and Menomonee Valley. To control costs, the city has reassessed service levels, streamlined operations, eliminated unnecessary ex- In 2004, balancing services and costs presents a penditures and consolidated departments. The focus daunting challenge. State and federal aids are de- has been on controlling municipal spending and re- creasing while the upward pressure of salary and ducing taxes, including supporting shared revenue health care costs continues. Demands for city serv- and similar programs that provide aid to fiscally re- ices remain high at the same time that demands to sponsible municipalities. lower or freeze taxes increase. Figure 2 In these challenging times, the city must establish a vision for the future that is supported by clear goals and strategies, accompanied by poli- Property Tax Levies 1988 through 2004 cies that ensure fiscal health and stability. The 2004 budget helps chart the course to a success- $200 $190 ful future for Milwaukee by controlling spend- $180 ing while meeting the demand for high quality $170 services. $160 $150 $140 Record on Taxes and Spending $130 (Millions of Dollars) $120 Fiscal stability requires controlling taxes and $110 spending. Fortunately, one of the city’s $100 strengths has been responsible fiscal manage- $90 $80 ment. Sound and disciplined fiscal planning 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Inflation Adjusted Actual Levy

2004 PLAN AND BUDGET SUMMARY 1 CHARTING THE COURSE FOR CONTINUED SUCCESS

The number of positions and employees has Figure 3 been significantly reduced. The total number of authorized positions has fallen by 1,118 or 11.1% since 1988. The 2004 budget continues this pol- Property Tax Rates 1988 through 2004 icy by eliminating 375 positions (see Figure 1). $14

$13.09

.. $12.85 Positions have been reduced with the goal of $13 maintaining essential services. Position reduc- $12.88 $12.76 $12.07 tions have helped limit growth in the property $12 $11.39 tax levy in the past and are necessary to limit $11.95 $10.87 growth in the levy in future years. $11 $10.53 $10.49 $10.15 $10.86 $9.99 Since 1988, the “real” or inflation adjusted prop- $10 $10.24 erty tax levy has fallen by $18.8 million (see Fig- $9.71 $9.69 $9.73 Dollars per $1,000 of Assessed Value ure 2). This has enabled the city to lower its $9 property tax rate by $3.36 since 1988. The city’s property tax rate for 2004 is $9.73, which is $8 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 nearly 26% below the 1988 rate of $13.09 (see Figure 3).

Since 1988, the City of Milwaukee has successfully dition, the level of city reserves, in both the Tax Sta- minimized spending increases. The property tax bilization Fund (TSF) and the Public Debt Amortiza- levy increased an average of 2.0% per year during tion Fund (PDAF), are maintained. The PDAF with- this period with many years experiencing a decline in drawal in 2004 will be $4 million, which is $1 million both property tax rates and levies. less than the $5 million withdrawal in 2003. The TSF withdrawal allows the city to adhere to its informal Milwaukee’s fiscal responsibility is evident by its policy of maintaining the TSF balance at 5% of gen- qualification for the Expenditure Restraint Payment eral fund expenditures. (ERP). ERP is a revenue distribution program established by the State of Wisconsin in 1990 that rewards Record on Services and Outcomes cities that limit their spending growth. Milwaukee has qualified for an ERP payment in every year it has Service delivery improvements and efficiencies have been available. enabled the city to enhance service outcomes while controlling costs. Significant improvements have In recent years, however, it has become more difficult occurred in each of the city’s six strategic planning to match this record. Reductions in state aid, such as areas. shared revenue, along with rising salary and health Public Safety: care costs have contributed to higher levy increases Milwaukee is a safe place to live, in recent years. The 2004 budget, although it in- work, shop, and visit. The violent crime rate has decreases the tax levy, limits growth in the levy to less creased as has the overall crime rate. The number of than the amount that would have been allowed un- fires and hazardous emergencies has declined, while der the tax levy freeze for local governments pro- the public structure fire incident rate remains lower posed by the Joint Finance Committee and the Senate than the national average. Fire deaths have been re- Republicans in the Wisconsin State Legislature. The duced from 26 in 1990 to 6 in 2002, a 77% decrease. levy increase is also limited to less than the rate of Public Health: inflation. The levy increased by 1%, while inflation is Milwaukee’s environmental health anticipated to be 1.8%. and the personal health of its citizens have improved. Tuberculosis incidence has decreased. The percent- While controlling both spending and the tax levy, the age of children with high levels of lead in their blood city has been fiscally responsible. Proper funding of has decreased, as has the infant mortality rate. The the pension system continues, with $2.5 million percent of city residents with health insurance cover- added to pension reserves in the 2004 budget. In ad- age increased from 85% in 1995 to 90% in 2002.

2 2004 PLAN AND BUDGET SUMMARY CHARTING THE COURSE FOR CONTINUED SUCCESS

Neighborhoods and Housing: The quality of Figure 4 neighborhoods and housing has improved. The overall assessed value of residential property has consistently increased since 1988. Owner Estimated Revenues and Expenditures occupancy for all housing units has increased, $980 with almost 80% of single family homes and $930 duplexes owner occupied. Household income has increased and a resurgent housing market, $880 with 5,340 new residential housing units constructed between 1990 and 2002 continues to $830 improve. Millions $780 Economic Development: Policies supporting $730 private sector growth and innovation have strengthened the local economy. The equalized $680 value of commercial and manufacturing prop- 2004 2005 2006 2007 2008 2009 erties increased, as has the city’s overall assessed Revenues Expenditures value. The number of jobs in Milwaukee increased by 24,500 or 8% between 1994 and 2001. summaries which follow and in the City of Milwau- There has also been real growth in wages, with serv- kee’s 2004 Fiscal Outlook and Strategic Plan, which is ice sector wages growing about 14%, and manufac- available on the city website at www.milwaukee.gov. turing wages growing about 28% between 1992 and 2001. Today Milwaukee is a more attractive place to live, work, and conduct business. Public safety and health Land Use and Transportation: Efforts to develop a have improved. The economy is growing. Neigh- balanced land use and transportation systems have borhoods are more vibrant and educational choices been enhanced by proposing an alternative have been expanded. At the same time, the size and Marquette Interchange Improvement Reconstruction cost of municipal government has been reduced as Plan that would reduce costs, speed reconstruction, the city has lowered the tax rate, streamlined gov- and improve the interchange to meet Milwaukee’s ernment, and improved essential services. needs; encouraging pedestrian friendly development, such as well designed streetscapes and the River- City government has added value to Milwaukee by Walk system; emphasizing multi-modal transporta- efficiently providing quality services. City efforts tion through support of mass transit and rail trans- will continue to add value only if they are based on a portation; and encouraging the use of bicycles for solid fiscal foundation and guided by strategic goals commuting and recreation, including a Bicycle Task and objectives. To this end, the 2004 budget estab- Force and support for new bicycle paths. lishes appropriate service and spending levels.

Quality Education: Milwaukee’s education system Fiscal Forecast: Challenges for 2004 and Beyond has been reformed to better support the needs of children and empower parents to improve their chil- Milwaukee annually forecasts its budget for the next dren’s education. The city has championed school five year period. The forecast assumes that the tax reform efforts such as School Choice, Charter rate will remain constant, that assessed values will Schools, and the Neighborhood Schools Initiative. grow 4% per year, and health care costs will increase City government has also expanded residents’ access by 15% per year. These assumptions and others help to computer technology and resources through pub- city policymakers assess the impact of fiscal changes lic libraries, with hours of computer use by patrons at outside the control of policymakers on the city and its the library increasing by 255% since 1996. budget process.

More detailed information on the aforementioned The city’s forecast (see Figure 4) depicts the gap be- accomplishments and how they have been achieved tween revenue raising capacity and expenditure is included in the individual city department budget need, not actual revenues and expenditures. Needs

2004 PLAN AND BUDGET SUMMARY 3 CHARTING THE COURSE FOR CONTINUED SUCCESS

and capacities change as a result of changes in Figure 5 environmental elements. Actual expenditures and revenues vary both because of changes in environmental elements and because of internal 2004 Budget for General changes, such as the city’s fiscal, managerial, City Purposes by Category and program delivery policies. By projecting only the needs capacity gap, policymakers are Equipment Purchases able to plan for policy changes they will need to 1.32% make in the future. Supplies, Services and Special Funds As the forecast shows, costs are projected to i n- 13.88% crease more rapidly than revenues. There are Personnel Costs several factors influencing this projection. 84.80%

State Aid: Intergovernmental revenue, including state aid, is a major revenue source for the city. State aids comprise 47.4% of total city revenues in 2004. Much of Milwaukee’s current fiscal uncertainty stems from recent and pro- These costs include those related to health care, posed changes to the state’s Shared Revenue Pro- workers’ compensation, employee retirement, and gram. The state froze shared revenue payments for others. Controlling expenditures for city employees seven years, from 1995 through 2001. The 2003-2005 is key to ensuring fiscal stability. State Budget cuts shared revenue by $50 million, including a $9.8 million cut for Milwaukee. Milwaukee One of the expenditures that the city is attempting to had the foresight to address the problem of declining manage is that of health care. The City of Milwaukee state aid as early as the late 1980’s, by exploring currently offers two types of health care plans: the revenue diversification and alternative funding Basic Plan, a self-insured plan, and multiple Health sources and by seeking ways to reduce expenses by Maintenance Organizations (HMO’s). The city’s fis- making government function more efficiently and cal struggle with salary and fringe benefit costs is effectively. These efforts will continue as future reflected in the Basic Plan trends. The city’s costs funding levels for state aid are uncertain and will have increased at an alarming rate considering that likely decline. both utilization and membership have decreased (see Figure 6). The state’s reduction of shared revenue payments have made it harder for Milwaukee to Figure 6 meet the expenditure limits established by the state in the Expenditure Restraint Program Basic Plan Net Cost Per Member (ERP). Nevertheless, Milwaukee has qualified (1993 - 2002) for an ERP payment in every year it has been $6,000 available. Unfortunately, the city has done so in the face of wage and benefit costs rising at rates $5,000 higher than the rate of inflation. Since wages and benefits account for over 80% of the city’s $4,000 budget, meeting the standards set forth for the yearly ERP payment puts additional constraints $3,000 on the city’s annual budget. $2,000

Municipal Workforce: City employees, those $1,000 individuals that provide city services, represent the city’s largest costs. In 2004, employee sala- $0 ries and fringe benefits will account for 84.8% of 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 the city’s general purpose budget (see Figure 5).

4 2004 PLAN AND BUDGET SUMMARY CHARTING THE COURSE FOR CONTINUED SUCCESS

One of the major factors driving city costs and mak- Cities in Wisconsin have limited ability to collect ing it more difficult to control spending has been revenues from their citizens; they are unable to col- health care. The health care budget has increased lect significant revenues from any source other than from $47.4 million in 1996 to $79.9 million in 2004. the property tax. Cities in many other states have During this same time period, the percentage of the more flexibility in available revenue sources. Be- property tax levy comprised by health care has in- cause of this constraint, Milwaukee is dependent on creased from 30.4% to 40.1%. While health care has taxable property value. This constraint makes it vi- increased significantly in recent years, the 2004 tally important to strengthen the city’s tax base for budget represents a decrease in the rate of growth. future tax collection purposes. Continued reduction in the growth of health care costs is critical to ensuring overall fiscal stability. The city also faces fiscal challenges from changing economic conditions. Revenue Diversification and Tax Exemptions: Pro- liferation of tax exemptions and the resulting growth National Economy in the proportion of exempt properties forces a shrinking number of city taxpayers to pay higher The national economy is continuing a steady growth. taxes to subsidize city services for owners of exempt Forecasts project growth in 2003 at 2.6% and in 2004 properties. Most recently, Wisconsin has enacted a at 3.9%. However, economic growth has continued personal property tax exemption for computers and without employment growth. This has led econo- special use valuations (such as agricultural use value) mists to believe that this is a jobless economic recov- for farmlands. Special treatment of narrow classes of ery. properties decreases the tax base, increases the tax rate, and shifts taxes to homeowners. It is expected that employment should begin to improve as business inventories continue to fall. Un- In recent years, the city has moved towards revenue fortunately, business inventories have fallen to near diversification. Charging user based fees for some record lows and employment has continued to be city services shifts payment to those directly benefit- sluggish. It appears that businesses are reluctant to ing from the service. In such cases, when tax exempt hire to build inventories, which suggests they are properties use a service, like garbage collection, they considering the recovery to be short term. pay for the service, thus eliminating their previous taxpayer subsidy. This approach also reduces city Federal policies that reduced taxes to promote busi- reliance on the property tax and intergovernmental ness investment have not produced increased busi- aid in times of fiscal uncertainty. ness investments. The tax cuts have occurred while interest rates are low. This combination with low The city is continuing to improve cost recovery. inventories should have stimulated business invest- While every year operating costs increase as a result ment. of inflation, wage rates increase and health care cost rise, fees do not automatically increase to offset these Perhaps there are larger structural issues that have costs. Fees are reviewed annually to determine if suppressed business investment. Terrorism contin- they should be increased to improve recovery of op- ues to be on the mind of investors and consumers. erating costs. In 2004, many fees including several Large government expenditures on terrorist preven- for permits and licenses are increased. This improves tion will place pressure to increase interest rates. the city’s ability to recover costs through fees charged This may worry investors that any sustained eco- directly to those who benefit from services, rather nomic growth is only temporary. than shifting this burden to property taxpayers. Local Economy In addition, more proactive efforts to aggressively pursue revenue collection have been implemented, The same issues facing the national economy are be- including the “egregious defendants” list at the Mu- ing felt locally. Unemployment remains high with nicipal Court, participation in the Tax Intercept Pro- limited business investment. This will especially be gram, and an improved use of In Personam actions to felt in the manufacturing sector. better collect delinquent taxes.

2004 PLAN AND BUDGET SUMMARY 5 CHARTING THE COURSE FOR CONTINUED SUCCESS

Compounding the employment issue is a continued Streamlining Management and Operations to mismatch of available jobs with those seeking em- Improve Service ployment. Transportation to employment is one cause of this mismatch. Many qualified individuals Several initiatives in the 2004 budget restructure and do not have the transportation means to accept jobs reorganize departments to improve service efficiency in many of the suburbs. Another factor is a mismatch and delivery. between the qualifications of the individuals and the duties of the job. For example, the Milwaukee area is • The Department of Administration (DOA) is re- experiencing a shortage of qualified people in the organized to create operational efficiencies. nursing profession. Job training and education will Budget and Management and Intergovernmental help narrow this mismatch. Relations staff are consolidated in a single division. All DOA division directors will be funded The city has had some success attracting high-tech at salary grade 15, for some this is a decrease industries. These industries provide relatively high from the current salary grade 17. This reorgani- wage jobs. While it is important to continue this ef- zation results in savings of $235,000. fort, these firms have been reluctant to invest due to the devastation of the last recession on this industry. • Milwaukee Printing and Records will be reorganized as Document Services to provide more Milwaukee will continue to judiciously provide ap- efficient and cost effective services. High speed propriate subsidies to promote business develop- and color copying will not be provided in-house ment. The intent will be to stimulate a stagnant and some printing operations will be contracted economy but hold government spending at a level out. This will eliminate four positions, with the that does not inadvertently deter or crowd out in- remaining non-management positions being vestment. This spending control is also important in cross-trained to better provide services. Tax levy the continuing effort to retain a strong housing mar- savings of $82,000 will result from this change. ket. • The City Attorney will reorganize its legal man- Additional details on the local economy can be found agement and support staff to consolidate legal in the city’s 2004 Fiscal Outlook and Strategic Plan. functions and increase efficiency. Two positions will be eliminated with savings of $168,640. This Vision and Strategies for Milwaukee will more closely align related areas and streamline the support staff according to legal function. As the fiscal forecast demonstrates, Milwaukee faces a challenging future. This requires policymakers to • The Assessor’s Office will continue to reorganize make critical decisions on service priorities and appraisal staff. Nine positions will be reduced spending levels. Clear priorities can only be estab- with savings of $301,787. Increased cross train- lished through a strategic framework that guides ing and broader assignments will create greater policy decisions based on long term goals and objec- flexibility in assigning work and dividing tasks. tives. • The Fire Department will consolidate the Bu- This strategic framework is established in the city’s reaus of Emergency Medical Services and Special Fiscal Outlook and Strategic Plan. It is to improve the Teams into a new Bureau of Special Operations. quality and efficiency of service delivery while effec- This eliminates one position and saves $86,427 tively addressing the core goals of public safety, while improving services. EMS and specialized public health, neighborhoods and housing, economic rescue teams responses will be coordinated more development, land use and transportation, and edu- effectively and there will be a more effective and cation. Improvements in these areas will make Mil- efficient response to HazMed situations. waukee a better place to live and work. The 2004 budget establishes a solid foundation for accomplishing these goals. • The Central Library will combine administration of the Humanities and the Art and Music areas to eliminate two positions and save $117,000.

6 2004 PLAN AND BUDGET SUMMARY CHARTING THE COURSE FOR CONTINUED SUCCESS

Technology to Improve Service ies of paper, entry errors, processing time, staffing and supply needs. The city is aggressively utilizing technology to increase efficiencies and improve the quality of serv- • An online permit system will allow issuance of ices. certain high volume development permit types beginning in 2004. DCD will continue to expand • The Department of Administration Information the Project Tracking System to consolidate in- Technology and Management Division will co- formation, review and approvals into a single ordinate expanded e-government initiatives, in- electronic record and facilitate permit issuance. cluding accessing various payments and services via online and the telephone. To improve its • The Parking Fund plans to develop kiosks (ATM- ability to focus on information policy admini- like technology) to sell and disburse night park- stration and e-government, ITMD will reorganize ing permits and to pay parking citations. The its operations. The six existing sections will be intent is to locate these machines in city facilities eliminated and replaced by three sections. and high traffic locations such as the University of Wisconsin Milwaukee and Marquette Univer- • In late 2003, the city implemented a five year sity. The machines will provide a more conven- contract for maintenance and support of the ient way to purchase night parking permits and city’s Financial Management Information System pay citations. (FMIS). This will save more than $500,000 over the contract period. By allowing an outside en- Enhancing the Quality of Services tity to maintain the FMIS hardware and software, city staff can focus on how to better use the FMIS While the city is controlling spending, it is also im- system. This change will ensure system reliabil- plementing initiatives to improve the level and quality, improved system performance, and cost sta- ity of services provided to the public. bility and predictability. • DPW is streamlining the code enforcement proc- • The Fire and Police Departments will implement ess for weeds and debris to allow some Forestry Computer Aided Dispatch (CAD) Systems to im- staff to directly issue citations for code violations prove public safety service response, manage- involving weeds and debris rather than relying ment, and accountability. The Police Department solely on Sanitation Supervisors for enforcement. will also continue to develop the infrastructure for a digital, trunked radio communication sys- • The new Washington Park Library opened in tem to be completed in 2005. This will more effi- April, 2003. This is the largest neighborhood li- ciently use radio frequencies and improve com- brary and offers improved services, including munication with other law enforcement agencies additional computers for public use; community during emergencies. meeting space; a larger area for children and young adults; an expanded collection of materi- • The Fire Department will enhance its ability to als; and expands the Adult Tutoring Program. reduce fire deaths by adding thermal imaging cameras to its fire fighting equipment. • The Fire Department will continue its expanded FOCUS (Fire Fighters Out Creating Urban Safety) • The Department of Employee Relations will im- Program to better protect residents from home, prove the employee benefit enrollment process health, and fire hazards. FOCUS centers around by implementing a new e-benefits system. This Fire Fighters going door-to-door in high fire risk $275,000 project will establish an online e- areas to install smoke detectors, replace batteries, benefits process for health, dental, flexible choice, and distribute fire prevention information to im- and long term disability benefits plans. This will prove fire prevention. In addition to fire educa- allow employees to view benefits and make tion and smoke detector inspections, the ex- benefit enrollment directly from their desktop or panded FOCUS Program will provide blood at a shared kiosk. This will reduce multiple cop- pressure/stroke screening, home safety inspec-

2004 PLAN AND BUDGET SUMMARY 7 CHARTING THE COURSE FOR CONTINUED SUCCESS

tions, and 9-1-1 and social service access infor- Advanced Life Support (ALS). The city will increase mation. MED units by one to improve ALS services and strengthen the paramedic system citywide. • The Fire Department will also implement the “Sleep Safely” Program throughout Milwaukee • The Assessor’s Office will pursue service agree- neighborhoods to further prevent and minimize ments with other Milwaukee County communi- the effects of fire and other trauma. This pro- ties. gram will focus on communities around the city’s 36 fire houses. Fire Fighters will canvas the • The Milwaukee Public Library will work with neighborhoods in their response areas to locate, Milwaukee Public Schools to create more part- test and install smoke detectors, develop emer- nerships between neighborhood library branches gency exit plans with residents, and distribute and neighborhood schools. emergency contact information. This will further improve fire prevention in neighborhoods out- • In 2004, Milwaukee will continue its work to side the FOCUS areas. streamline operations across government lines. The city will work with Milwaukee County to • The Health Department will combine public explore consolidation of services. These services health nursing services with the Health Depart- include, but are not limited to, information sys- ment Women Infants and Children (WIC) Clinic tems, greenhouse operations, procurement ac- services to provide a “one stop shopping” envi- tivities, and both “live” and online auctions. ronment for clients. This will allow clients to receive Public Health Nurse services while waiting • The Milwaukee Public Library will be for their WIC appointment. Services will target renegotiating its member agreement and re- the reduction of infant mortality by education source library contract with the Milwaukee and counseling on such topics as safe sleep envi- County Federated Library System to ensure the ronment, early signs of labor, and safety for chil- seamless countywide system continues to benefit dren. all county residents.

Intergovernmental Cooperation to Improve Conclusion Service Milwaukee faces many challenges. Addressing these The city is one government among several in the challenges requires a continuing commitment to the Milwaukee area. Cooperation among all govern- strategic planning, strong fiscal management, and mental entities is essential to improving service de- effective policy leadership which have helped Mil- livery. waukee successfully control costs while improving services. The 2004 budget, in conjunction with the The city will enter into a new contract with Milwau- Fiscal Outlook and Strategic Plan, charts the course for kee County for its Paramedic Program providing Milwaukee’s continued success.

8 2004 PLAN AND BUDGET SUMMARY 2004 ADOPTED BUDGET AND TAX RATE COMPARED TO PRIOR YEAR TAX RATE / $1,000 2003 2004 CHANGE CHANGE PURPOSE OF EXPENDITURE ADOPTED ADOPTED 2004 MINUS 2003 2004 2004 MINUS AND FUNDING SOURCE BUDGET* BUDGET* 2003 ADOPTED ADOPTED ADOPTED 2003 ADOPTED A. GENERAL CITY PURPOSES 1. Budget (Expend. Auth.) $488,429,001 $496,631,541 $8,202,540 2. Non Tax Levy Funding 403,694,620 411,475,813 7,781,193 3. Tax Levy Funding 84,734,381 85,155,728 421,347 $4.37 $4.16 $-0.20 B. EMPLOYEE RETIREMENT 1. Budget (Expend. Auth.) $66,634,994 $68,172,487 $1,537,493 2. Non Tax Levy Funding 25,697,662 25,786,249 88,587 3. Tax Levy Funding 40,937,332 42,386,238 1,448,906 $2.11 $2.07 $-0.04 C. CAPITAL IMPROVEMENTS 1. Budget (Expend. Auth.) $107,128,383 $109,649,250 $2,520,867 2. Non Tax Levy Funding 96,540,580 98,173,740 1,633,160 3. Tax Levy Funding 10,587,803 11,475,510 887,707 $0.55 $0.56 $0.02 D. CITY DEBT 1. Budget (Expend. Auth.) $118,803,887 $118,727,769 $-76,118 2. Non Tax Levy Funding 64,041,654 64,732,859 691,205 3. Tax Levy Funding 54,762,233 53,994,910 -767,323 $2.82 $2.64 $-0.18 E. DELINQUENT TAX 1. Budget (Expend. Auth.) $1,000,000 $1,000,000 $0 2. Non Tax Levy Funding 0 0 0 3. Tax Levy Funding 1,000,000 1,000,000 0 $0.05 $0.05 $-0.00 F. CONTINGENT FUND 1. Budget (Expend. Auth.) $5,000,000 $5,000,000 $0 2. Non Tax Levy Funding 0 0 0 3. Tax Levy Funding 5,000,000 5,000,000 0 $0.26 $0.24 $-0.01 SUBTOTAL (A+B+C+D+E+F) 1. Budget (Expend. Auth.) $786,996,265 $799,181,047 $12,184,782 2. Non Tax Levy Funding 589,974,516 600,168,661 10,194,145 3. Tax Levy Funding 197,021,749 199,012,386 1,990,637 $10.15 $9.73 $-0.42 G. PARKING FUND 1. Budget (Expend. Auth.) $42,387,797 $44,806,125 $2,418,328 2. Non Tax Levy Funding 42,387,797 44,806,125 2,418,328 3. Tax Levy Funding 0 0 0 $0.00 $0.00 $0.00 H. GRANT AND AID 1. Budget (Expend. Auth.) $83,572,350 $71,908,461 $-11,663,889 2. Non Tax Levy Funding 83,572,350 71,908,461 -11,663,889 3. Tax Levy Funding 0 0 0 $0.00 $0.00 $0.00 I. ECONOMIC DEVELOPMENT FUND 1. Budget (Expend. Auth.) $4,504,379 $4,761,827 $257,448 2. Non Tax Levy Funding 4,504,379 4,761,827 257,448 3. Tax Levy Funding 0 0 0 $0.00 $0.00 $0.00 J. WATER DEPARTMENT 1. Budget (Expend. Auth.) $90,118,579 $108,075,206 $17,956,627 2. Non Tax Levy Funding 90,118,579 108,075,206 17,956,627 3. Tax Levy Funding 0 0 0 $0.00 $0.00 $0.00 K. SEWER MAINTENANCE FUND 1. Budget (Expend. Auth.) $46,248,059 $45,665,233 $-582,826 2. Non Tax Levy Funding 46,248,059 45,665,233 -582,826 3. Tax Levy Funding 0 0 0 $0.00 $0.00 $0.00 M. COUNTY DELINQUENT TAXES FUND 1. Budget (Expend. Auth.) $9,000,000 $9,500,000 $500,000 2. Non Tax Levy Funding 9,000,000 9,500,000 500,000 3. Tax Levy Funding 0 0 0 $0.00 $0.00 $0.00 SUBTOTAL (G+H+I+J+K+L+M) 1. Budget (Expend. Auth.) $275,831,164 $284,716,852 $8,885,688 2. Non Tax Levy Funding 275,831,164 284,716,852 8,885,688 3. Tax Levy Funding 0 0 0 $0.00 $0.00 $0.00

TOTAL (A thru M) 1. Budget (Expend. Auth.) $1,062,827,429 $1,083,897,899 $21,070,470 2. Non Tax Levy Funding 865,805,680 884,885,513 19,079,833 3. Tax Levy Funding 197,021,749 199,012,386 1,990,637 $10.15 $9.73 $-0.42

Tax Rates and Assessed Value – 2004 adopted rate column is based on an estimated assessed value of $20,460,009,116 as of December 4, 2003. * Totals may not add due to rounding.

2004 PLAN AND BUDGET SUMMARY 9 PROPERTY TAX PROFILE COMBINED PROPERTY TAX RATES 2000-2004 (PER $1,000 ASSESSED VALUATION, ROUNDED TO THE NEAREST FULL CENT) (RATES MAY NOT ADD DUE TO ROUNDING)

2000 2001 2002 2003 2004 City of Milwaukee (Controlled by the Common Council) General City Purposes $3.58 $4.43 $4.30 $4.37 $4.16 Provision for Employee Retirement 2.37 2.09 2.21 2.11 2.07 Capital Improvement Program 0.17 0.13 0.58 0.55 0.56 City Debt (Including School Debt) 3.16 3.46 3.41 2.82 2.64 Delinquent Tax Fund 0.09 0.09 0.06 0.05 0.05 Common Council Contingent Fund 0.32 0.29 0.31 0.26 0.24 Subtotal - City of Milwaukee $9.69 $10.49 $10.87 $10.16 $9.73 Area Board of Vocation, Technical, and Adult Education District Nine $2.16 $2.00 $2.23 $2.05 $2.04 Milwaukee School Board 10.38 9.87 10.12 9.34 8.96 Metropolitan Sewerage District 1.80 1.68 1.87 1.74 1.64 State - Forestry 0.21 0.20 0.22 0.23 0.23 Milwaukee County 5.82 5.46 5.91 5.17 4.92 Subtotal - Other Taxing Bodies $20.37 $19.21 $20.35 $18.53 $17.79 Total Combined Tax Rate $30.06 $29.70 $31.22 $28.69 $27.52 State Tax Credit $-2.00 $-1.69 $-1.66 $-1.43 $-1.35 Net Tax Rate $28.06 $28.01 $29.56 $27.26 $26.17 PROPERTY TAX LEVIES FOR COMMON COUNCIL CONTROLLED PURPOSES

2000 2001 2002 2003 2004

General City Purposes $55,385,058 $76,260,767 $74,364,442 $84,734,381 $85,155,728 Provision for Employee Retirement 36,670,849 35,942,562 38,090,209 40,937,332 42,386,238 Capital Improvement Program 2,637,480 4,044,209 6,284,793 10,587,803 11,475,510 City Debt 48,973,382 59,490,256 58,915,763 54,762,233 53,994,910 Delinquent Tax Fund 1,400,000 1,600,000 1,000,000 1,000,000 1,000,000 Common Council Contingent Fund 5,000,000 5,000,000 5,420,458 5,000,000 5,000,000 Total Property Tax Levies for Common Council Controlled Purposes $150,066,769 $182,337,794 $184,075,665 $197,021,749 $199,012,386 TAXABLE ASSESSED VALUATION City of Milwaukee 2000-2004

Residential $9,163,659,090 $10,292,622,989 $10,358,670,619 $12,027,394,755 $12,938,633,380 Commercial 5,104,209,557 5,612,521,788 5,716,180,475 6,176,360,800 6,493,804,441 Manufacturing 633,181,600 741,471,600 717,830,700 765,130,300 729,858,200 Total Real Estate $14,901,050,247 $16,646,616,377 $16,792,681,794 $18,968,885,855 $20,162,296,021 Personal Property $873,822,920 $936,378,220 $997,177,244 $897,397,660 $847,221,220 Total Taxable Assessed Valuation $15,774,873,167 (a) $17,582,994,597 (b) $17,789,859,038 (c) $19,866,283,515 (d) $21,009,517,241 (e)

*Amount Includes Tax Increment District Assessed Value. (a) Based upon assessed values as of December 14, 1999. (b) Based upon assessed values as of November 30, 2000. (c) Based upon assessed values as of December 5, 2001. (d) Based upon assessed values as of December 5, 2002. (e) Based upon assessed values as of December 4, 2003.

10 2004 PLAN AND BUDGET SUMMARY COMPARISONS BY BUDGET SECTION BETWEEN 2004 ADOPTED AND 2003 ADOPTED BUDGETS, REVENUES, TAX LEVIES, AND RESULTING CHANGES CHANGE 2003 2004 2004 ADOPTED ADOPTED ADOPTED VERSUS BUDGET BUDGET 2003 ADOPTED A. GENERAL CITY PURPOSES Appropriations Salaries and Wages $309,455,851 $322,168,267 $12,712,416 Fringe Benefits 97,517,405 98,974,152 1,456,747 Operating Expenditures 59,720,346 56,920,362 -2,799,984 Equipment Purchases 6,498,337 6,565,862 67,525 Special Funds 112,754,467 110,977,050 -1,777,417 Fringe Benefit Offset -97,517,405 -98,974,152 -1,456,747 TOTAL APPROPRIATIONS $488,429,001 $496,631,541 $8,202,540 Funding Sources General City Revenues $394,394,620 $394,605,813 $211,193 Tax Stabilization Fund Withdrawal 9,300,000 16,870,000 7,570,000 Potential Anticipated Revenues 0 0 0 Property Tax Levy 84,734,381 85,155,728 421,347 TOTAL REVENUES $488,429,001 $496,631,541 $8,202,540

B. EMPLOYEE RETIREMENT

TOTAL APPROPRIATIONS $66,634,994 $68,172,487 $1,537,493 Funding Sources Non-Property Tax Revenue $25,697,662 $25,786,249 $88,587 Property Tax Levy 40,937,332 42,386,238 1,448,906 TOTAL REVENUES $66,634,994 $68,172,487 $1,537,493

C. CAPITAL IMPROVEMENTS

TOTAL CAPITAL IMPROVEMENTS PROGRAM Appropriations $107,128,383 $109,649,250 $2,520,867 Funding Sources 1. BORROWING (General Obligation) a. New $64,985,180 $61,494,450 $-3,490,730 b. Carryover (60,768,188) (104,144,922) (43,376,734) 2. BORROWING (Tax Incremental Districts) a. New $14,000,000 $19,000,000 $5,000,000 b. Carryover (15,629,180) (27,916,180) (12,287,000) 3. SPECIAL ASSESSMENTS (Internal Borrowing) a. New $7,955,400 $5,179,290 $-2,776,110 b. Carryover (17,320,926) (19,196,326) (1,875,400) 4. CASH FINANCED a. FROM REVENUES 1. New $9,600,000 $12,500,000 $2,900,000 2. Carryover (0) (0) (0) b. FROM TAX LEVY 10,587,803 11,475,510 887,707 c. TOTAL CASH FINANCED $20,187,803 $23,975,510 $3,787,707 TOTAL REVENUES (Capital Improvements) $107,128,383 $109,649,250 $2,520,867

D. CITY DEBT

TOTAL APPROPRIATIONS $118,803,887 $118,727,769 $-76,118 (Includes borrowing for Milwaukee Public Schools) Funding Sources Revenues $35,411,106 $33,174,616 $-2,236,490

2004 PLAN AND BUDGET SUMMARY 11 CHANGE 2003 2004 2004 ADOPTED ADOPTED ADOPTED VERSUS BUDGET BUDGET 2003 ADOPTED TID Increments 15,653,716 13,944,841 -1,708,875 Delinquent Tax Revenue 12,976,832 13,613,402 636,570 Property Tax Levy 54,762,233 53,994,910 -767,323 PDAF Withdrawl 0 4,000,000 4,000,000 TOTAL REVENUES $118,803,887 $118,727,769 $-76,118

E. DELINQUENT TAX

TOTAL APPROPRIATIONS $1,000,000 $1,000,000 $0 Funding Sources TOTAL REVENUE (Property Tax Levy) $1,000,000 $1,000,000 $0

F. COMMON COUNCIL CONTINGENT FUND

TOTAL APPROPRIATIONS $5,000,000 $5,000,000 $0 Funding Sources TOTAL REVENUE (Property Tax Levy) $5,000,000 $5,000,000 $0

SUBTOTALS (ITEMS A THROUGH F) CITY BUDGET APPROPRIATIONS $786,996,265 $799,181,047 $12,184,782 (Excluding Special Revenue Accounts) Less: Non-Property Tax Revenues 589,974,516 600,168,661 10,194,145 PROPERTY TAX LEVIES $197,021,749 $199,012,386 $1,990,637

SPECIAL REVENUE ACCOUNTS (ITEMS G THROUGH M)

G. PARKING

TOTAL APPROPRIATIONS $42,387,797 $44,806,125 $2,418,328 Funding Sources Current Revenues $16,434,597 $16,817,255 $382,658 Capital Improvements from Reserves 5,000,000 5,000,000 0 Withdrawal from Reserves 0 2,323,546 2,323,546 Citation Revenue and Processing 19,292,200 19,359,424 67,224 New Borrowing 1,661,000 1,305,900 -355,100 Other Funding (Carryover Borrowing) (200,000) (1,094,000) (894,000) Property Tax Levy 0 0 0 TOTAL REVENUES $42,387,797 $44,806,125 $2,418,328

H. GRANT AND AID

TOTAL APPROPRIATIONS $83,572,350 $71,908,461 $-11,663,889 Funding Sources Grantor Share $83,572,350 $71,908,461 $-11,663,889 Out of Pocket Current Year 0 0 0 In Kind-City 0 0 0 Property Tax Levy 0 0 0 TOTAL REVENUES $83,572,350 $71,908,461 $-11,663,889

I. ECONOMIC DEVELOPMENT

TOTAL APPROPRIATIONS $4,504,379 $4,761,827 $257,448 Funding Sources Business Improvement District Assessment $4,504,379 $4,761,827 $257,448 TOTAL REVENUES $4,504,379 $4,761,827 $257,448

12 2004 PLAN AND BUDGET SUMMARY CHANGE 2003 2004 2004 ADOPTED ADOPTED ADOPTED VERSUS BUDGET BUDGET 2003 ADOPTED J. WATER WORKS Appropriations Operating Budget $52,418,579 $55,085,206 $2,666,627 Capital Improvements Program 14,900,000 22,620,000 7,720,000 Debt Service (Principal and Interest) 8,500,000 8,350,000 -150,000 Capital Funding from Retained Earnings 14,300,000 22,020,000 7,720,000 TOTAL APPROPRIATIONS $90,118,579 $108,075,206 $17,956,627 Funding Sources Current Operating Revenues $69,232,872 $69,611,574 $378,702 Non-Operating Revenues 6,100,000 7,260,000 1,160,000 Proceeds from Borrowing 0 0 0 Use of Retained Earnings 14,785,707 31,203,632 16,417,925 Property Tax Levy 0 0 0 TOTAL REVENUES $90,118,579 $108,075,206 $17,956,627

K. SEWER MAINTENANCE Appropriations Operating Budget $26,548,059 $24,165,233 $-2,382,826 Capital Improvements Program 19,700,000 21,500,000 1,800,000 TOTAL APPROPRIATIONS $46,248,059 $45,665,233 $-582,826 Funding Sources Sewer User Fee $28,236,959 $31,661,733 $3,424,774 Charges for Services 261,100 220,500 -40,600 Miscellaneous Revenue 0 83,000 83,000 Proceeds from Borrowing 17,750,000 13,700,000 -4,050,000 TOTAL REVENUES $46,248,059 $45,665,233 $-582,826

M. COUNTY DELINQUENT TAXES Appropriations Operating Budget $9,000,000 $9,500,000 $500,000 TOTAL APPROPRIATIONS $9,000,000 $9,500,000 $500,000 Funding Sources Operating Revenue $9,000,000 $9,500,000 $500,000 TOTAL REVENUES $9,000,000 $9,500,000 $500,000 SUBTOTALS SPECIAL REVENUE ACCOUNT BUDGETS (ITEMS G THROUGH M) TOTAL BUDGETS $275,831,164 $284,716,852 $8,885,688 TOTAL REVENUES (NON-PROPERTY TAX) $275,831,164 $284,716,852 $8,885,688 GRAND TOTALS (ITEMS A THROUGH M) BUDGET APPROPRIATIONS $1,062,827,429 $1,083,897,899 $21,070,470 LESS: NON-PROPERTY TAX REVENUES $865,805,680 $884,885,513 $19,079,833 PROPERTY TAX LEVIES $197,021,749 $199,012,386 $1,990,637

NOTE: All adopted budgets for the governmental funds are prepared in accordance with the modified accrual basis of accounting, except for the treatment of the fund balance reserved for tax stabilization. For budget purposes, the fund balance reserved for tax stabilization is reflected as other financing sources. However, for accounting purposes it is reflected as part of the overall fund balance.

2004 PLAN AND BUDGET SUMMARY 13 PROPERTY TAX RATE AND LEVY COMPARISON

The graphs below show property tax rates and levies erty tax rate has decreased by $3.36, from $13.09 in for the City of Milwaukee from 1988 through the 1988 to the 2004 rate of $9.73. During this same pe- 2004 budget. The 2004 tax rate of $9.73 is $0.42 riod, the “real” or inflation adjusted property tax lower than the 2003 rate of $10.15. The 2004 tax levy levy has fallen $18.7 million. of $199 million totals an increase of $2 million from the 2003 levy of $197 million. Since 1988, the prop-

Property Tax Rates 1988 through 2004

$14

$13.09 .. $12.85 $13

$12.88 $12.76 $12.07 $12 $11.39 $11.95 $10.87 $11 $10.53 $10.49 $10.86 $10.15 $9.99 $10 $10.24

$9.71 $9.69 $9.73 Dollars per $1,000 of Assessed Value $9

$8 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Property Tax Levies 1988 through 2004

$200 $190 $180 $170 $160 $150 $140 $130 (Millions of Dollars) $120 $110 $100 $90 $80 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Inflation Adjusted Actual Levy

14 2004 PLAN AND BUDGET SUMMARY GENERAL CITY PURPOSES SPENDING

The pie chart below depicts the proportions of gen- It should be noted that the 2004 budget funds ap- eral city purposes spending allocated to Personnel proximately $9.9 million of major equipment pur- Costs (84.8%), Supplies, Services, and Special Funds chases in the capital budget. (13.88%), and Equipment Purchases (1.32%) in the 2004 budget.

2004 Budget for General City Purposes by Category

Equipment Purchases 1.32%

Supplies, Services and Special Funds 13.88%

Personnel Costs 84.80%

The following bar graph indicates changes in ized citywide. Excluding temporary and seasonal authorized positions from 1993 to 2004. Funding for staff, the 2004 budget reflects a net decrease of 375 personnel costs (which include salary and wages) positions from 2003 levels (9,297 in 2003 to 8,922 in relates directly to the number of positions author- 2004).

City of Milwaukee Authorized Positions

9,900 9,700 9,500 9,300 9,100 8,900 8,700 8,500 8,300 8,100 7,900 7,700 7,500 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

2004 PLAN AND BUDGET SUMMARY 15 CHANGE IN POSITIONS 2004 ADOPTED BUDGET VS 2003 ADOPTED BUDGET

CHANGE 2003 2004 2004 ADOPTED ADOPTED ADOPTED VERSUS BUDGET BUDGET 2003 ADOPTED GENERAL CITY PURPOSES

Administration, Department of 119 108 -11 Assessor's Office 65 56 -9 Attorney, City 65 61 -4 Common Council City Clerk 114 102 -12 City Development, Department of 325 252 -73 Comptroller 66 70 4 Court, Municipal 46 45 -1 Debt Commission, Public 5 0 -5 Election Commission 72 110 38 Employee Relations, Department of 105 99 -6 Fire Department 1,146 1,151 5 Health 367 359 -8 Library 445 409 -36 Mayor's Office 18 15 -3 Neighborhood Services 216 223 7 Police Department 2,952 2,951 -1 Port of Milwaukee 34 33 -1 Public Works, Department of (Total) (3,344) (2,820) (-524) DPW-Administrative Services 69 64 -5 DPW-Infrastructure Services 783 728 -55 DPW-Operations 2,492 2,028 -464 SPA-Board of Zoning Appeals 11 11 0 Treasurer, City 61 60 -1 GENERAL CITY PURPOSES TOTAL 9,576 8,935 -641

*GENERAL CITY PURPOSES TOTAL 9,511 8,832 -679

PENSIONS Employes' Retirement System 42 48 6 Deferred Compensation 2 2 0 Policemen's Annuity and Benefit Fund 1 1 0 PENSIONS TOTAL 45 51 6

Parking Fund 128 128 0 Water Works 382 363 -19 Sewer Maintenance Fund 209 198 -11 SUB-TOTAL BUDGETED POSITIONS 10,340 9,675 -665

Less Temporary Positions 1,043 753 -290

TOTAL BUDGETED POSITIONS 9,297 8,922 -375 * Does not include Election Commissioners and Election Commission Temporary Office Assistants (65 positions in 2003 and 103 positions in 2004) due to staffing fluctuations between election and non-election years.

16 2004 PLAN AND BUDGET SUMMARY ESTIMATED FULL-TIME EQUIVALENTS BY DEPARTMENT O & M FUNDED

CHANGE 2003 2004 2004 ADOPTED ADOPTED ADOPTED VERSUS BUDGET BUDGET 2003 ADOPTED

Administration, Department of 75.43 67.05 -8.38 Assessor's Office 57.66 48.55 -9.11 Attorney, City 54.80 58.40 3.60 City Development 55.91 46.75 -9.16 Common Council City Clerk 99.19 95.07 -4.12 Comptroller 57.63 54.53 -3.10 Court, Municipal 41.78 40.80 -0.98 Debt Commission, Public 2.00 0.00 -2.00 Election Commission* 7.00 7.00 0.00 Employee Relations, Department of 69.24 65.65 -3.59 Fire Department 1,157.49 1,146.51 -10.98 Health 192.93 185.42 -7.51 Library 322.92 328.60 5.68 Mayor's Office 13.50 13.21 -0.29 Neighborhood Services, Department of 163.80 166.58 2.78 Police Department 2,591.50 2,636.84 45.34 Port of Milwaukee 19.00 19.50 0.50 Public Works, Department of (Total) (1,273.15) (1,204.28) (-68.87) DPW-Administrative Services 56.90 54.38 -2.52 DPW-Infrastructure Services 303.58 267.01 -36.57 DPW-Operations 912.67 882.89 -29.78 Special Purpose Accounts 3.00 3.00 0.00 Treasurer, City 32.43 31.90 -0.53 TOTAL 6,290.36 6,219.64 -70.72

PENSIONS Employes' Retirement System 40.00 40.00 0.00 Deferred Compensation 2.00 2.00 0.00 Policemen's Annuity and Benefit Fund Administration 0.59 0.59 0.00 TOTAL 42.59 42.59 0.00

Parking 126.25 126.25 0.00 Sewer Maintenance Fund 108.84 109.35 0.51 Water Works 375.63 360.12 -15.51 GRAND TOTAL 6,943.67 6,857.95 -85.72

* Election Commission does not include Temporary Office Assistants (7.98 FTEs 2003/11.29 FTEs 2004) due to staffing fluctuations between election and non-election years.

2004 PLAN AND BUDGET SUMMARY 17 ESTIMATED DIRECT LABOR HOURS BY DEPARTMENT O & M FUNDED

CHANGE 2003 2004 2004 ADOPTED ADOPTED ADOPTED VERSUS BUDGET BUDGET 2003 ADOPTED

Administration, Department of 135,774 120,690 -15,084 Assessor's Office 103,800 87,400 -16,400 Attorney, City 98,640 105,120 6,480 City Development 100,638 84,150 -16,488 Common Council City Clerk 178,542 171,122 -7,420 Comptroller 103,734 98,154 -5,580 Court, Municipal 75,200 73,500 -1,700 Debt Commission, Public 3,600 0 -3,600 Election Commission* 12,600 12,600 0 Employee Relations, Department of 124,632 118,170 -6,462 Fire Department 2,684,604 2,558,512 -126,092 Health 347,274 333,756 -13,518 Library 581,256 591,480 10,224 Mayor's Office 24,753 23,970 -783 Neighborhood Services, Department of 294,840 299,844 5,004 Police Department 4,275,975 4,350,787 74,812 Port of Milwaukee 34,200 35,100 900 Public Works, Department of (Total) (2,291,610) (2,167,704) (-123,906) DPW-Administrative Services 102,420 97,884 -4,536 DPW-Infrastructure Services 546,384 480,618 -65,766 DPW-Operations 1,642,806 1,589,202 -53,604 Special Purpose Accounts 5,400 5,400 0 Treasurer, City 58,366 57,416 -950 TOTAL 11,535,438 11,294,875 -240,563

PENSIONS Employes' Retirement System 72,000 73,340 1,340 Deferred Compensation 3,600 3,600 0 Policemen's Annuity and Benefit Fund Administration 1,066 1,066 0 TOTAL 76,666 78,006 1,340

Parking 227,250 227,250 0 Sewer Maintenance Fund 195,912 196,830 918 Water Works 676,134 648,216 -27,918 GRAND TOTAL 12,711,400 12,445,177 -266,223 * Election Commission does not include Temporary Office Assistants (14,360 DLHs 2003/20,322 DLHs 2004) due to staffing fluctuations between election and non-election years.

18 2004 PLAN AND BUDGET SUMMARY COMPARISON OF 2004 ADOPTED EXPENDITURES AND FUNDING SOURCES WITH PRIOR YEARS BY MAJOR BUDGET SECTIONS AND SUBSECTIONS SECTION 1. CITY BUDGET UNDER THE CONTROL OF THE COMMON COUNCIL

2001 2002 2003 2004 2004 ADOPTED ACTUAL ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES** EXPENDITURES** BUDGET BUDGET 2003 ADOPTED A. GENERAL CITY PURPOSES 1. BUDGETS FOR GENERAL CITY PURPOSES Administration, Department of $8,273,788 $8,578,413 $8,498,269 $7,340,588 $-1,157,681 Assessor's Office 4,607,143 4,947,547 4,603,519 4,120,568 -482,951 Attorney, City 6,503,802 6,130,966 6,437,106 6,301,050 -136,056 City Development, Department of 4,309,983 4,613,301 4,290,826 3,534,627 -756,199 Common Council City Clerk 7,464,018 7,684,106 7,861,232 7,212,879 -648,353 Comptroller 4,497,766 4,591,716 5,005,043 5,237,466 232,423 Debt Commission, Public 501,225 562,272 593,799 0 -593,799 Election Commission 950,491 2,015,664 1,079,917 1,639,802 559,885 Employee Relations, Department of 4,556,184 4,750,240 5,576,493 5,077,262 -499,231 Fire and Police Commission 1,049,009 1,128,795 0 0 0 Fire Department 85,720,340 81,223,968 78,433,193 89,377,106 10,943,913 Health Department 13,867,057 13,429,965 13,814,912 13,201,538 -613,374 Library Board 21,146,658 23,245,658 21,727,872 21,191,333 -536,539 Mayor's Office 1,160,317 1,148,640 1,202,032 953,978 -248,054 Municipal Court 3,103,094 3,252,402 3,385,806 3,174,955 -210,851 Neighborhood Services, Department of 12,544,679 12,698,137 12,702,465 12,946,562 244,097 Police Department 170,556,537 175,356,495 168,810,655 179,947,129 11,136,474 Port of Milwaukee 2,148,002 3,248,046 3,280,923 3,422,909 141,986 Public Works Department: (Total) (73,194,473) (108,252,230) (109,952,867) (103,001,134) (6,951,733) Administrative Services 4,485,772 4,676,074 4,856,904 4,553,338 -303,566 Buildings and Fleet 35,378,500 0 0 0 0 Forestry 10,961,183 0 0 0 0 Infrastructure Services 22,369,018 22,061,243 23,748,383 22,476,509 -1,271,874 Operations 0 81,514,913 81,347,580 75,971,287 -5,376,293 Special Purpose Accounts 118,945,824 * 103,506,053 * 125,665,617 125,007,912 -657,705 Treasurer, City 2,900,953 2,945,902 3,023,860 2,916,895 -106,965 Fringe Benefit Offset -93,147,829 -100,359,578 -97,517,405 -98,974,152 -1,456,747 TOTAL BUDGETS FOR GENERAL CITY PURPOSES $454,853,514 ** $472,950,938 ** $488,429,001 $496,631,541 $8,202,540 * Special Purpose Account expenditures do not include wage supplement funding. These funds are reflected in departmental expenditures. 2. SOURCE OF FUNDS FOR GENERAL CITY PURPOSES (REVENUES)

Taxes and Payment in Lieu of Taxes $12,688,302 $12,139,772 $12,876,500 $11,953,500 $-923,000 Licenses and Permits 10,486,223 10,814,079 9,053,700 10,025,300 971,600 Intergovernmental Revenue 278,968,470 283,067,696 284,217,956 273,548,000 -10,669,956 Charges for Services 39,464,202 62,098,365 51,180,864 57,376,613 6,195,749 Fines and Forfeitures 4,402,849 5,209,573 4,113,000 4,784,700 671,700 Miscellaneous Revenue 26,586,160 18,539,402 16,692,600 20,407,700 3,715,100 Fringe Benefits 22,197,836 18,711,469 16,250,000 16,500,000 250,000 Cost Recovery 10,000 10,000 10,000 10,000 0 TOTAL REVENUES $394,804,042 $410,590,356 $394,394,620 $394,605,813 $211,193

Tax Stabilization Fund Withdrawals $5,500,000 $11,000,000 $9,300,000 $16,870,000 $7,570,000 Potential Anticipated Revenues 0 0 0 0 0 Property Tax Levy 76,260,767 74,364,442 84,734,381 85,155,728 421,347 TOTAL FINANCING FOR GENERAL CITY PURPOSES $476,564,809 $495,954,798 $488,429,001 $496,631,541 $8,202,540

B. EMPLOYEE RETIREMENT

1. BUDGETS FOR EMPLOYEE RETIREMENT FIREMEN'S PENSION FUND Pension Contribution $262,681 $263,000 $296,000 $267,500 $-28,500 Lump-Sum Supplement Contribution 1,100,212 0 500,000 500,000 0 POLICEMEN'S PENSION FUND Pension Contribution $229,109 $360,513 $473,708 $975,773 $502,065 Administration 94,729 96,086 106,295 104,107 -2,188 Employer's Share of Employees' Annuity Contribution 4,187 3,641 5,000 0 -5,000 Lump-Sum Supplement Contribution 1,395,349 150,000 500,000 500,000 0

2004 PLAN AND BUDGET SUMMARY 19 2001 2002 2003 2004 2004 ADOPTED ACTUAL ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES** EXPENDITURES** BUDGET BUDGET 2003 ADOPTED EMPLOYEE'S RETIREMENT FUND Pension Contribution $0 $0 $205,000 $36,740 $-168,260 Administration 19,308,782 19,764,113 24,006,425 23,872,035 -134,390 Employer's Share of Employees Annuity Contribution 20,536,793 20,452,173 20,153,000 21,412,000 1,259,000 Annuity Contribution - Employers' Reserve Fund 0 1,000,000 3,000,000 2,450,000 -550,000 SOCIAL SECURITY Social Security Tax $15,665,597 $15,971,827 $16,136,000 $16,680,500 $544,500 FORMER TOWN OF LAKE EMPLOYEES RETIREMENT FUND Pension Contribution $114,799 $114,799 $114,799 $176,000 $61,201 FORMER TOWN OF LAKE FIREMEN'S RETIREMENT FUND Pension Contribution $28,398 $28,104 $28,850 $28,850 $0 DEFERRED COMPENSATION $0 $841,712 $1,109,917 $1,168,982 $59,065 TOTAL BUDGETS FOR EMPLOYEE RETIREMENT $58,740,636 ** $59,045,968 ** $66,634,994 $68,172,487 $1,537,493

2. SOURCE OF FUNDS FOR EMPLOYEE RETIREMENT

Fringe Benefits - Pension $539,826 $682,235 $775,134 $802,267 $27,133 Charges to Retirement Fund 19,080,179 19,669,609 23,812,611 23,659,000 -153,611 Charges to Deferred Compensation 0 813,547 1,109,917 1,168,982 59,065 Employers' Reserve Fund 2,500,561 0 0 0 0 Miscellaneous ERS 0 -445 0 156,000 156,000 Property Tax Levy 35,942,562 38,090,209 40,937,332 42,386,238 1,448,906 TOTAL FINANCING FOR EMPLOYEE RETIREMENT $58,063,128 $59,255,155 $66,634,994 $68,172,487 $1,537,493

C. CAPITAL IMPROVEMENTS

1. BUDGETS FOR CAPITAL IMPROVEMENTS

Special Capital Projects or Purposes $3,452,454 $669,538 $11,325,000 $10,325,000 $-1,000,000 Administration, Department of 0 535,568 811,500 630,000 -181,500 Attorney, City 27,441 89,082 0 0 0 City Development, Department of 23,324,270 17,574,834 16,850,000 23,950,000 7,100,000 Common Council City Clerk 6,293 61,058 0 0 0 Court, Municipal 338 26,842 0 250,000 250,000 Fire Department 412,800 2,194,952 5,105,000 5,840,000 735,000 Health Department 230,896 71,359 1,129,700 1,240,000 110,300 Library Board 835,027 3,133,743 990,000 2,000,000 1,010,000 Neighborhood Services, Department of 2,518,365 3,696,076 260,000 0 -260,000 Police Department 22,127,707 7,297,784 4,571,793 6,510,000 1,938,207 Port of Milwaukee 653,146 196,281 400,000 650,000 250,000 Department of Public Works (Total): (42,678,361) (33,522,418) (65,685,390) (58,254,250) (7,431,140) Administration 602,033 488,337 626,000 626,000 0 Buildings and Fleet 6,979,652 0 0 0 0 Forestry 943,182 0 0 0 0 Infrastructure 34,042,532 25,531,239 35,533,185 30,629,750 -4,903,435 Sanitation 110,962 0 0 0 0 Operations 0 7,502,842 29,526,205 26,998,500 -2,527,705 TOTAL BUDGETS FOR CAPITAL IMPROVEMENTS - Other $96,267,098 ** $69,069,535 ** $107,128,383 $109,649,250 $2,520,867 than Parking, Water Department and Sewer Maintenance 2. SOURCE OF FUNDS FOR CAPITAL IMPROVEMENTS

General Obligation Borrowings New Borrowing $61,557,359 $46,279,392 $64,985,180 $61,494,450 $-3,490,730 Carryover Borrowing 0 (a) 0 (a) 60,768,188 (a) 104,144,922 (a) 43,376,734 (a) Tax Increment District - Public Improvements New Borrowing 20,547,737 12,793,544 14,000,000 19,000,000 5,000,000 Carryover Borrowing 0 (a) 0 (a) 15,629,180 (a) 27,916,180 (a) 12,287,000 (a) Anticipated Special Assessments New Authorizations 7,046,689 3,095,438 7,955,400 5,179,290 -2,776,110 Carryover Special Assessments 0 (a) 0 (a) 17,320,926 (a) 19,196,326 (a) 1,875,400 (a) Capital Improvement Revenues Cash Revenues 3,071,104 616,368 9,600,000 12,500,000 2,900,000 Carryover Capital Revenues 0 (a) 0 (a) 0 (a) 0 (a) 0 (a)

20 2004 PLAN AND BUDGET SUMMARY 2001 2002 2003 2004 2004 ADOPTED ACTUAL ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES** EXPENDITURES** BUDGET BUDGET 2003 ADOPTED Property Tax Levy 4,044,209 6,284,793 10,587,803 11,475,510 887,707 TOTAL FINANCING FOR CAPITAL IMPROVEMENTS - Other $96,267,098 * $69,069,535 * $107,128,383 $109,649,250 $2,520,867 than Parking, Water Department and Sewer Maintenance (a) Reiteration of prior year's authority does not affect budget totals. * Does not include School Board expenditures. D. CITY DEBT (INCLUDING SCHOOL PURPOSES)

1. BUDGET FOR CITY DEBT Bonded Debt (Principal) $73,647,248 $78,509,045 $82,662,123 $77,950,064 $-4,712,059 Bonded Debt (Interest) 40,426,122 39,504,166 39,437,264 44,611,924 5,174,660 Subtotal $114,073,370 $118,013,211 $122,099,387 $122,561,988 $462,601 LESS: Prepayment Prepayment Deduction (PDAF) Special Assessment $-3,548,915 $-3,295,465 $-3,295,500 $-3,834,219 $-538,719 TOTAL BUDGET FOR CITY DEBT (a) $110,524,455 ** $114,717,746 ** $118,803,887 $118,727,769 $-76,118 Milwaukee School Board (a) Included in City Debt amounts above are the following amounts 2001 $14,447,637 for school purposes, not controlled by the Common Council: 2002 $14,179,494 2003 $14,145,935 2004 $13,206,168 (est.) 2. SOURCE OF FUNDS FOR CITY DEBT

Revenues $30,413,448 $30,389,719 $35,411,106 $33,174,616 $-2,236,490 TID Increments from Prior Year 9,649,639 14,440,831 15,653,716 13,944,841 -1,708,875 Delinquent Tax Revenues 12,998,908 13,371,861 12,976,832 13,613,402 636,570 Public Debt Amortization Fund Withdrawal 0 0 0 4,000,000 4,000,000 Property Tax Levy 59,490,256 58,915,763 54,762,233 53,994,910 -767,323 TOTAL FINANCING FOR CITY DEBT $112,552,251 $117,118,174 $118,803,887 $118,727,769 $-76,118

E. DELINQUENT TAX

1. BUDGET FOR DELINQUENT TAX Delinquent Tax Fund $1,600,000 $1,000,000 $1,000,000 $1,000,000 $0 2. SOURCE OF FUNDS FOR DELINQUENT TAX Property Tax Levy $1,600,000 $1,000,000 $1,000,000 $1,000,000 $0 F. COMMON COUNCIL CONTINGENT FUND

1. BUDGET FOR COMMON COUNCIL CONTINGENT FUND Common Council Contingent Fund $-4,299,600 * $-5,420,458 * $5,000,000 $5,000,000 $0 2. SOURCE OF FUNDS FOR COMMON COUNCIL CONTINGENT FUND Property Tax Levy $5,000,000 $5,420,458 $5,000,000 $5,000,000 $0 *2001 and 2002 experience shown for informational purposes only. Expenditure experience represents transfers and expenditures authorized by resolution. SUBTOTAL BUDGET AUTHORIZATIONS - COMMON COUNCIL CONTROLLED PURPOSES (Except Water and Special Revenue Accounts) $721,985,703 $716,784,187 $786,996,265 $799,181,047 $12,184,782 Non-Tax Levy 567,709,492 563,742,455 589,974,516 600,168,661 10,194,145 Tax Levy 182,337,794 184,075,665 197,021,749 199,012,386 1,990,637 SUBTOTAL FINANCING FOR (ESTIMATED REVENUES) - COMMON COUNCIL CONTROLLED BUDGETS (Except Water $750,047,286 $747,818,120 $786,996,265 $799,181,047 $12,184,782 and Special Accounts)

SPECIAL REVENUE ACCOUNTS SECTIONS G THROUGH M

G. PARKING

1. BUDGET FOR PARKING PROGRAM

Operating and Maintenance Expense $23,621,635 $24,416,376 $27,426,797 $26,500,225 $-926,572 Transfer to General Fund 15,041,085 8,250,000 8,300,000 12,000,000 3,700,000 Deposit to Retained Earnings 0 4,983,469 0 0 0

2004 PLAN AND BUDGET SUMMARY 21 2001 2002 2003 2004 2004 ADOPTED ACTUAL ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES** EXPENDITURES** BUDGET BUDGET 2003 ADOPTED Capital Improvement Program 2,132,592 832,348 1,661,000 1,305,900 -355,100 Capital Improvements to be Financed from Available Cash Reserves 0 0 5,000,000 5,000,000 0 TOTAL BUDGET FOR PARKING $40,795,312 ** $38,482,193 ** $42,387,797 $44,806,125 $2,418,328

2. SOURCE OF FUNDS FOR PARKING PROGRAM

Parking Permits $1,893,102 $2,445,442 $2,409,000 $2,408,000 $-1,000 Meters 3,778,605 3,998,011 3,886,000 3,921,400 35,400 Rental and Lease of Facilities 6,571,342 6,828,838 6,784,188 6,787,855 3,667 Towing of Vehicles 1,721,192 2,088,090 1,903,000 2,000,000 97,000 Miscellaneous 2,108,003 2,040,686 1,452,409 2,059,424 607,015 FINANCING OF PARKING OPERATIONS - SUBTOTAL $16,072,244 $17,401,067 $16,434,597 $17,176,679 $742,082

Other Funding Sources: Withdrawal from Reserves $2,956,615 $0 $0 $2,323,546 $2,323,546 Municipal and Traffic Citations 0 0 392,200 0 -392,200 Citation Revenue 19,633,861 20,248,778 18,900,000 19,000,000 100,000 Capital Improvements to be Financed from Available: Cash Reserves 0 0 5,000,000 5,000,000 0 New Borrowing 2,132,592 832,348 1,661,000 1,305,900 -355,100 Carryover Borrowing (0) (0) (200,000) (a) (1,094,000) (a) (894,000) (a) Other Funding Sources - Subtotal 24,723,068 21,081,126 25,953,200 27,629,446 1,676,246 Property Tax Levy 0 0 0 0 0 TOTAL FINANCING FOR PARKING $40,795,312 $38,482,193 $42,387,797 $44,806,125 $2,418,328

(a) Reiteration of prior year's authority does not affect budget totals.

H. GRANT AND AID PROJECTS (EXCEPT CAPITAL)

1. BUDGET FOR GRANT AND AID PROJECTS Grantor Share (Non-City) $61,164,577 $67,954,977 $83,572,350 $71,908,461 $-11,663,889 TOTAL FOR GRANT AND AID PROJECTS

(Except Capital) $61,164,577 $67,954,977 $83,572,350 $71,908,461 $-11,663,889 Less In-Kind City Share 0 0 0 0 0 TOTAL FOR GRANT AND AID $61,164,577 ** $67,954,977 ** $83,572,350 $71,908,461 $-11,663,889

2. SOURCE OF FUNDS FOR GRANT AND AID PROJECTS

Grantor Share (Non-City) $61,164,577 $67,954,977 $83,572,350 $71,908,461 $-11,663,889 Out of Pocket City Share 0 0 0 0 0 In-Kind City Share 0 0 0 0 0 Property Tax Levy 0 0 0 0 0 TOTAL FINANCING FOR GRANT AND AID PROJECTS $61,164,577 $67,954,977 $83,572,350 $71,908,461 $-11,663,889 (EXCEPT CAPITAL PROJECTS) I. ECONOMIC DEVELOPMENT FUND

1. BUDGET FOR ECONOMIC DEVELOPMENT FUND Business Improvement Districts $0 $0 $4,504,379 $4,761,827 $257,448

TOTAL BUDGET FOR ECONOMIC DEVELOPMENT FUND $0 $0 $4,504,379 $4,761,827 $257,448

2. SOURCE OF FUNDS FOR ECONOMIC DEVELOPMENT FUND Business Improvement District Assessments $0 $0 $4,504,379 $4,761,827 $257,448 TOTAL SOURCE OF FUNDS FOR ECONOMIC $0 $0 $4,504,379 $4,761,827 $257,448 DEVELOPMENT FUND J. WATER WORKS

1. BUDGET FOR WATER WORKS-DEPARTMENT OF PUBLIC WORKS

Operating Budget $55,207,989 $50,533,642 $52,418,579 $55,085,206 $2,666,627 Capital Improvements Program 8,631,613 9,902,984 14,900,000 22,620,000 7,720,000 Debt Service (Principal and Interest) 0 5,716,317 8,500,000 8,350,000 -150,000

22 2004 PLAN AND BUDGET SUMMARY 2001 2002 2003 2004 2004 ADOPTED ACTUAL ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES** EXPENDITURES** BUDGET BUDGET 2003 ADOPTED Deposits to Special Accounts (Retained Earnings) 12,120,000 18,577,284 14,300,000 22,020,000 7,720,000 TOTAL EXPENDITURES AND DEPOSITS $75,959,602 ** $84,730,227 ** $90,118,579 $108,075,206 $17,956,627

2. SOURCE OF FUNDS FOR WATER WORKS

Operating Revenue $61,649,201 $68,552,488 $69,232,872 $69,611,574 $378,702 Retained Earnings 6,304,665 6,351,410 14,785,707 31,203,632 16,417,925 Non-Operating Revenue 8,005,736 9,826,329 6,100,000 7,260,000 1,160,000 Proceeds from Borrowing 0 0 0 0 0 Property Tax Levy 0 0 0 0 0 TOTAL SOURCE OF FUNDS FOR WATER WORKS $75,959,602 $84,730,227 $90,118,579 $108,075,206 $17,956,627

K. SEWER MAINTENANCE

1. BUDGET FOR SEWER MAINTENANCE

Operating Budget $14,145,343 $20,167,832 $26,548,059 $24,165,233 $-2,382,826 Capital Budget 10,331,571 16,288,590 19,700,000 21,500,000 1,800,000 TOTAL BUDGET FOR SEWER MAINTENANCE $24,476,914 ** $36,456,422 ** $46,248,059 $45,665,233 $-582,826

2. SOURCE OF FUNDS FOR SEWER MAINTENANCE

Sewer User Fee $17,374,681 $27,865,587 $28,236,959 $31,661,733 $3,424,774 Charges for Services 1,440,257 56,772 261,100 220,500 -40,600 Miscellaneous Revenue 84,609 343,666 0 83,000 83,000 Proceeds from Borrowing 29,095,000 8,190,397 17,750,000 13,700,000 -4,050,000

TOTAL SOURCE OF FUNDS FOR SEWER MAINTENANCE $47,994,547 $36,456,422 $46,248,059 $45,665,233 $-582,826

L. SOLID WASTE FUND

1. BUDGET FOR SOLID WASTE FUND Operating Budget $34,662,453 $0 $0 $0 $0 TOTAL BUDGET FOR SOLID WASTE FUND $34,662,453 $0 $0 $0 $0

2. SOURCE OF FUNDS FOR SOLID WASTE FUND

City Contribution $27,112,587 $0 $0 $0 $0 Other Miscellaneous Revenue 1,207,119 0 0 0 0 Solid Waste Fee 8,265,947 0 0 0 0 TOTAL SOURCE OF FUNDS FOR SOLID WASTE FUND $36,585,653 $0 $0 $0 $0

M. DELINQUENT COUNTY TAXES 1. BUDGET FOR DELINQUENT COUNTY TAXES Delinquent County Taxes and Tax Certificate Purchases $8,343,368 $8,531,457 $9,000,000 $9,500,000 $500,000 TOTAL BUDGET FOR DELINQUENT COUNTY TAXES $8,343,368 $8,531,457 $9,000,000 $9,500,000 $500,000

2. SOURCE OF FUNDS FOR DELINQUENT COUNTY TAXES Purchase of Milwaukee County Delinquent Taxes $8,343,368 $8,531,457 $9,000,000 $9,500,000 $500,000 TOTAL SOURCE OF FUNDS FOR DELINQUENT COUNTY $8,343,368 $8,531,457 $9,000,000 $9,500,000 $500,000 TAXES SUBTOTAL BUDGET AUTHORIZATION FOR SPECIAL $245,402,226 $236,155,276 $275,831,164 $284,716,852 $8,885,688 REVENUE ACCOUNTS SUBTOTAL ESTIMATED REVENUES FOR SPECIAL $270,843,059 $236,155,276 $275,831,164 $284,716,852 $8,885,688 REVENUE ACCOUNTS TOTAL ALL BUDGETS UNDER THE CONTROL OF THE COMMON COUNCIL* (Includes Water and Special Revenue $967,387,929 $952,939,463 $1,062,827,429 $1,083,897,899 $21,070,470 Accounts) TOTAL FINANCING REVENUES OF BUDGETS UNDER THE CONTROL OF THE COMMON COUNCIL (Includes Water and $1,020,890,345 $983,973,396 $1,062,827,429 $1,083,897,899 $21,070,470 Special Revenue Accounts) ** Expenditures include funding carried over from prior years.

2004 PLAN AND BUDGET SUMMARY 23 SECTION II. SUMMARY OF BORROWING AUTHORIZATIONS (INCLUDING SCHOOL PURPOSES)

2002 2003 2004 General Obligation Bonds or Short-Term Notes New Borrowing General City Purposes $64,612,401 $66,646,180 $62,800,350 Schools 12,000,000 12,000,000 212,000,000 Subtotal New Borrowing $76,612,401 $78,646,180 $274,800,350 Carryover Borrowing* (60,045,643) (63,548,188) (104,141,422) SUBTOTAL $76,612,401 $78,646,180 $274,800,350

Special Assessment Borrowing New Borrowing $4,936,093 $7,955,400 $5,179,290 Carryover Borrowing* (16,599,821) (17,320,926) (19,196,326) SUBTOTAL $4,936,093 $7,955,400 $5,179,290

Contingency Borrowing New Borrowing $30,000,000 $30,000,000 $30,000,000 Carryover Borrowing* (0) (0) (0) SUBTOTAL $30,000,000 $30,000,000 $30,000,000

Tax Incremental District Borrowing New Borrowing $14,500,000 $14,000,000 $19,000,000 Carryover Borrowing* (14,734,180) (15,629,180) (27,916,180) SUBTOTAL $14,500,000 $14,000,000 $19,000,000

Delinquent Taxes Borrowing New Borrowing $15,000,000 $15,000,000 $15,000,000 Carryover Borrowing* (0) (0) (0) SUBTOTAL $15,000,000 $15,000,000 $15,000,000

Revenue Anticipation Borrowing New Borrowing $250,000,000 $250,000,000 $300,000,000 Carryover Borrowing* (0) (0) (0) SUBTOTAL $250,000,000 $250,000,000 $300,000,000

Water Works Borrowing New Borrowing $0 $0 $0 Carryover Borrowing* (14,300,000) (0) (0) SUBTOTAL $0 $0 $0

Sewer Maintenance Fund Borrowing New Borrowing $16,138,500 $17,750,000 $13,700,000 Carryover Borrowing* (29,095,000) (16,138,500) (3,500) SUBTOTAL $16,138,500 $17,750,000 $13,700,000

Total - All Borrowing New Borrowing $407,186,994 $413,351,580 $657,679,640 Carryover Borrowing* (134,774,644) (112,636,794) (151,257,428) TOTAL $407,186,994 $413,351,580 $657,679,640

* Not included in budget totals, reiteration of prior years authority.

24 2004 PLAN AND BUDGET SUMMARY 2003 SALARY AND WAGE INFORMATION USED FOR BUDGET PURPOSES (FOR INFORMATIONAL PURPOSES ONLY) The salary and rates shown in the following salary and wage schedule are based on the most current information available as of the date of the adoption of the 2004 budget. (Please refer to note at the end of schedule for procedure and assumption utilized in determining salary and wage appropriations in the 2004 budget.) CURRENT RATES (MINIMUM - MAXIMUM) Pay Annual Rate Pay Annual Rate Pay Annual Rate Pay Annual Rate Pay Annual Rate Range Minimum Maximum Range Minimum Maximum Range Minimum Maximum Range Minimum Maximum Range Minimum Maximum

001 31,914 - 44,676 255 34,448 - 38,440 440 30,277 - 33,379 572 40,291 - 46,882 734 34,110 - 42,500 002 34,007 - 47,604 258 34,731 - 39,382 441 30,569 - 33,671 576 45,696 - 54,073 740 30,967 - 33,939 003 36,241 - 50,735 260 * 35,013 - 39,392 445 * 30,890 - 34,183 587 47,663 - 56,846 741 31,670 - 34,834 004 38,634 - 54,086 262 35,439 - 39,898 450 30,158 - 34,888 588 39,876 - 61,974 742 31,970 - 35,797 005 41,182 - 57,658 265 36,082 - 40,672 455 * 32,307 - 36,018 589 49,112 - 55,276 750 25,649 - 40,284 006 43,889 - 61,451 268 36,303 - 41,357 460 * 33,071 - 37,063 591 51,907 - 63,071 785 45,714 - 51,452 007 46,785 - 65,496 270 37,011 - 42,066 475 33,976 - 40,783 592 33,499 - 40,197 786 - 53,498 008 49,853 - 69,792 272 25,710 - 28,244 478 31,533 - 42,079 593 37,131 - 44,948 788 49,953 - 56,223 009 53,158 - 74,419 274 29,330 - 31,300 480 18,862 - 26,061 594 38,455 - 46,660 796 46,562 - 61,687 010 56,651 - 79,313 275 37,011 - 42,865 490 26,292 - 31,835 595 39,888 - 48,440 798 54,157 - 70,122 011 60,397 - 84,553 276 32,654 - 34,625 495 29,955 - 34,509 596 41,412 - 50,291 801 38,951 - 52,517 012 64,363 - 90,108 278 36,863 - 38,378 500 * 29,601 - 32,615 598 46,352 - 56,300 804 51,495 - 54,836 013 68,596 - 96,041 280 - 40,684 503 27,818 - 33,224 599 50,675 - 65,220 808 54,225 - 58,598 014 73,128 - 102,383 281 39,014 ` 44,640 504 29,601 - 34,183 600 27,029 - 32,637 810 56,671 - 60,603 015 77,943 - 109,118 282 39,486 - 45,300 505 * 30,890 - 34,183 602 31,444 - 38,516 812 58,636 - 62,570 016 83,074 - 116,309 285 39,699 - 45,605 508 29,955 - 34,509 604 36,702 - 49,145 813 56,368 - 68,440 017 88,550 - 123,972 287 38,858 ` 47,120 510 31,580 - 35,043 606 43,189 - 55,564 831 43,859 - 53,237 018 94,388 - 132,141 290 41,159 - 52,138 515 30,315 - 37,063 607 54,157 - 64,567 835 49,264 - 59,809 019 100,605 - 140,843 291 39,863 52,138 516 32,307 - 36,695 619 35,354 - 42,243 836 51,211 - 62,178 020 107,230 - 150,128 300 24,319 - 28,722 520 33,071 - 37,063 620 36,896 - 50,051 839 57,534 - 69,869 305 25,202 - 29,316 522 33,152 - 37,556 621 41,936 - 50,051 842 64,641 - 78,520 036 - 3,000 309 * 24,929 - 30,585 525 33,875 - 38,152 622 43,765 - 56,846 850 31,123 - 52,517 037 - 4,200 314 26,555 - 31,198 526 33,152 - 39,652 624 41,936 - 50,051 851 30,412 - 52,517 040 - 6,350 324 * 27,743 - 31,888 528 33,443 - 38,982 625 46,562 - 61,687 853 39,243 - 55,615 041 - 6,600 325 * 29,007 - 31,888 529 21,945 - 23,435 626 47,663 - 56,846 856 50,181 - 58,598 047 - 45,148 329 28,338 - 32,615 530 * 34,735 - 39,322 627 51,911 - 61,882 857 56,368 - 68,440 050 - 14,960 330 29,601 - 32,615 532 33,083 39,397 628 54,157 - 64,567 858 31,541 - 42,090 335 * 30,277 - 33,379 534 34,446 - 40,599 629 54,157 - 70,122 863 63,327 - 76,905 148 45,199 - 106,987 338 30,585 - 33,723 535 * 35,710 - 40,599 630 61,574 - 73,346 865 71,151 - 86,427 200 23,774 - 29,441 340 * 30,890 - 34,183 536 34,446 - 37,979 635 31,063 - 35,622 867 97,138 - 118,045 205 * 25,646 - 31,305 345 31,580 - 35,043 540 36,755 - 41,977 640 33,152 - 37,556 210 27,274 - 31,916 347 32,778 - 35,385 541 36,755 - 43,586 642 38,858 - 47,120 215 29,787 - 32,666 350 32,307 - 36,018 542 38,426 - 43,586 644 44,862 - 54,513 220 30,083 - 33,029 355 33,071 - 37,063 545 37,844 - 43,380 665 33,084 - 38,367 225 30,380 - 33,393 360 33,875 - 38,152 546 37,844 - 46,267 666 38,367 - 47,114 230 30,622 - 33,723 400 * 21,473 - 26,872 547 38,858 - 47,120 670 46,623 - 56,452 235 31,314 - 34,581 404 22,665 - 28,126 549 43,072 - 50,586 694 37,304 - 42,339 238 31,670 - 34,982 405 * 23,930 - 28,126 550 39,014 - 44,640 696 40,970 - 47,029 240 32,025 - 35,385 406 23,082 - 29,332 553 39,014 - 46,356 698 42,373 - 48,665 245 32,792 - 36,253 410 * 24,928 - 29,332 555 40,291 - 46,005 704 30,923 - 33,923 247 34,272 - 38,000 415 * 26,191 - 30,585 556 40,291 - 49,128 710 32,166 35,407 248 33,183 - 36,910 424 * 26,191 - 31,360 557 41,196 - 46,892 722 28,886 - 34,663 249 33,252 - 37,172 425 * 28,348 - 31,360 558 39,014 - 47,926 724 28,455 - 36,373 250 33,576 - 37,567 430 29,007 - 31,888 559 44,893 - 51,766 726 30,468 - 37,518 252 34,049 - 38,024 435 * 29,601 - 32,615 560 43,072 - 49,176 732 33,557 - 41,035 254 33,184 - 38,440 437 28,812 - 33,123 565 44,331 - 50,982 733 34,110 - 42,085 *These rates apply to positions represented by District Council 48, AFSCME, AFL-CIO. Rates for positions that are not represented by a certified bargaining unit and those represented by Local 61, Laborers' International Union, in the DPW-Solid Waste Fund, and ALEASP differ somewhat, as specified in the Salary Ordinance. According to the 2004 Salary Ordinance, in no case shall the salary of any city official exceed that of the Mayor.

2004 PLAN AND BUDGET SUMMARY 25 CURRENT RATES (Continued)

Pay Hourly Pay Hourly Pay Hourly Pay Hourly Range Rate Range Rate Range Rate Range Rate

900 5.29 931 13.95 - 14.94 955 ** 18.34 984 22.40

902 6.33 - 7.40 934 ** 21.67 956 22.23 985 24.15

906 6.49 - 7.92 936 ** 16.10 957 22.81 986 23.02

910 8.45 - 11.09 939 11.99 - 12.29 958 23.87 987 22.58

918 7.51 - 8.76 940 15.45 - 16.96 960 23.08 988 24.84

923 8.64 - 9.72 943 10.00 961 23.66 989 26.35

924 9.21 - 11.32 944 12.00 962 23.42 990 24.11

925 ** 9.07 945 13.00 974 14.67 - 18.27 991 25.46

926 9.77 - 11.09 947 *** 64.73 975 11.97 - 21.54 992 25.97

927 10.75 - 12.77 948 *** 76.50 978 23.93 993 24.24

928 10.86 - 13.49 950 39.30 981 21.71

929 10.06 - 10.61 951 ** 16.69 - 17.95 982 22.30

930 11.66 - 14.67 954 18.64 983 22.08

** Official Rate - Biweekly *** Official Rate - Daily 2004 Budget - For 2004 Budget Purposes The individual salary and wage rate lines were based on 2002 rates of pay for most salary groups with the exception of MPA and Local 215 members which are at 2003 rates of pay and MPSO and Local 195 who are at 2000 rates of pay. In addition, $17.7 million was provided within the Wages Supplement Fund to supplement departmental salary and wage accounts during 2004 on an "as needed" basis and to cover shortages caused by wage rate changes.

26 2004 PLAN AND BUDGET SUMMARY SCHOOL BOARD BUDGET (NOT UNDER THE CONTROL OF THE COMMON COUNCIL) (FOR INFORMATIONAL PURPOSES ONLY) A. BUDGET FOR SCHOOL BOARD*

2000-2001 2001-2002 2002-2003 2003-2004 BUDGET BUDGET BUDGET BUDGET

Appropriations and Expenditures $850,293,630 $857,325,253 $959,077,084 $983,615,986

TOTAL APPROPRIATIONS AND EXPENDITURES $850,293,630 $857,325,253 $959,077,084 $983,615,986

B. SOURCE OF FUNDS FOR SCHOOL BOARD*

Non-Property Tax Revenue and Surpluses $680,402,698 $682,590,660 $778,030,933 $800,417,549

TAX LEVIES

Property Tax Levy $169,890,932 $174,734,593 $181,046,151 $183,198,437

TOTAL FINANCING OF SCHOOL BOARD BUDGET $850,293,630 $857,325,253 $959,077,084 $983,615,986

*School Board budget is based on fiscal year ending June 30.

2004 PLAN AND BUDGET SUMMARY 27 28 I. CITY BUDGET UNDER THE CONTROL OF THE COMMON COUNCIL PROPERTY TAX SUPPLEMENTED FUNDS SUMMARY OF EXPENDITURES

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENSE CATEGORY EXPENDITURES BUDGET BUDGET 2033 ADOPTED

A. General City Purposes $472,950,938 $488,429,001 $496,631,541 $8,202,540

B. Employee Retirement 59,045,968 66,634,994 68,172,487 1,537,493

C. Capital Improvements 69,069,535 107,128,383 109,649,250 2,520,867

D. City Debt 114,717,746 118,803,887 118,727,769 -76,118

E. Delinquent Tax Fund 1,000,000 1,000,000 1,000,000 0

F. Contingent Fund (5,420,458) * 5,000,000 5,000,000 0

TOTAL $716,784,187 $786,996,265 $799,181,047 $12,184,782

* Shown for informational purposes only. Actual expenditures reflected in departmental budgets.

2004 PLAN AND BUDGET SUMMARY 29 A. GENERAL CITY PURPOSES

1. BUDGET APPROPRIATIONS AND EXPENDITURES

2004 PLAN AND BUDGET SUMMARY 31 DEPARTMENT OF ADMINISTRATION

EXECUTIVE SUMMARY

MISSION: To make Milwaukee one of the Nation’s most attractive cities in which to live, work, and do business.

STRATEGIC Influence forces external to city government to strengthen Milwaukee’s position as a thriving ISSUES: economic, social, and cultural center.

Use the department’s resources to assure Milwaukee’s government provides cost effective services that add value to the city.

Build alliances with other U.S. cities, rural areas, and regional decisionmakers to persuade state and federal policymakers to create better solutions regarding low income adults, transportation, housing, and the environment.

INITIATIVES Maximize operational efficiencies by reorganizing the department. FOR 2004: Reorganize the Information and Technology Management Division to reflect the changing information technology environment as well as to reflect the city’s increased focus on information policy administration and e-government.

Implement a contract for management of the city’s Financial Management Information System.

Restructure the city’s printing processes based on decreased departmental demand.

Implement a system to monitor capital expenditures.

Work with Milwaukee County to explore opportunities for intergovernmental cooperation.

BACKGROUND

In 1989, the City of Milwaukee implemented a cabi- the city’s interests to both the state and federal gov- net form of government. As part of that restructur- ernments, works to equitably distribute grant funds ing, the city also consolidated various administrative to city agencies and neighborhood organizations, and policymaking activities formerly performed by helps represent the interests of disadvantaged local the Department of Budget and Management Analy- businesses in their efforts to obtain both city and sis, the Department of Intergovernmental Fiscal Liai- other government contracts, and assists in develop- son, the Central Board of Purchases, Central Elec- ment of strategic policy. tronic Data Services, and the Community Develop- ment Agency into a newly created Department of In 2000, the department reorganized to further en- Administration (DOA). hance its ability to provide several of these critical services. DOA created a new Information and Tech- DOA plays a critical “behind the scenes” role in pro- nology Management Division (ITMD) to improve viding government services. The department works management and coordination of the city’s informa- with departments throughout the city to ensure that tion and technology systems. The reorganization they obtain the goods and services needed to meet also merged printing and records management ac- their objectives, develops the Mayor‘s budget, pro- tivities with purchasing functions in the Business vides analysis and recommendations on fiscal and Operations Division. In 2002, the department con- management issues that affect the city, represents tinued to reorganize by consolidating the Equal Op-

2004 PLAN AND BUDGET SUMMARY 33 DEPARTMENT OF ADMINISTRATION portunity Enterprise Program into the Business Op- ernmental Relations Division and creates two new erations Division. divisions: Budget and Policy Division and Commu- nity Block Grant Division. This department-wide In 2004, the department is further reorganizing to reorganization also makes significant changes within take advantage of operating efficiencies. This reor- the Business Operations and Information and Tech- ganization eliminates the Administration Division, nology Management Divisions. Budget and Management Division, and Intergov-

OBJECTIVE 1

Influence policies and leverage resources Outcome Indicators and Funding beyond city government so as to improve the quality of life for city residents by in- 2002 2003 2004 Experience Budget Projection creasing the number of jobs available and Ratio of persons looking for 1:21 to 1 1:18:1 1:18 to 1 reducing the ratio of persons looking for work to the number of job work compared to job openings to 1:18 or openings in the metropolitan less by 2004. area. Funding by Source: OUTCOME HISTORY Operating Funds $308,350 $314,673 $250,677 Grant and Reimbursable 603,281 702,756 784,643 The 2004 budget provides $250,677 in tax Total: $911,631 $1,017,429 $1,035,320 levy funding to support the department’s efforts to provide jobs and improve the qual- Figure 1 ity of life of Milwaukee’s residents. Federal Community Block Grants will provide an Change in Total City Budget* additional $784,643 in staffing costs towards 1988-2004 this goal. The department measures its suc- $1,200 cess toward achieving this objective by whether it has improved or maintained the $1,000 ratio of persons looking for or expected to work to the number of job openings in the $800

Milwaukee metropolitan area. $600 In Millions DOA contributes to the success of this meas- $400 ure in a variety of ways. The Community Block Grant Division administers and moni- $200 tors services and activities that enrich and $0 improve the quality of life in target areas of 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Milwaukee. The Budget and Policy Division Total City Budget Inflation Adjusted Budget (1988 Dollars) will continue to work to reduce the cost of *Fringe Offset and Grant & Aid In-Kind Share Not Included. city government, keeping city spending constant in inflation adjusted dollars (see Figure 1) and leaving more money (with which businesses boundaries; and 3) expanding health care, services, can create jobs) in the private economy. This divi- jobs and training to non-custodial parents. sion will also continue to focus on reducing the tax burden on residents and businesses by achieving ACTIVITIES more equitable state revenue sharing and school aid formulas. • Administration of community development block grants The department will focus on numerous strategies to • Purchasing activities meet this objective in 2004 including: 1) enhancing • Intergovernmental relations and lobbying clustering activities for Community Development • Budget development Block Grant (CDBG) dollars; 2) redrawing CDBG

34 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF ADMINISTRATION

PROGRAM CHANGES Position Changes: In addition to the position changes resulting from DOA’s reorganization, one Community Development Block Grant Funding: new position of Rental Rehabilitation Specialist is The 2004 budget includes $11.1 million in funding added to the Community Block Grant Administra- for community development programs supported by tion staff. This position will be responsible for main- city departments, approximately $640,000 less than taining compliance with the HOME Program af- in 2003. The only additional community develop- fordability requirements found at 24 CFR Part 92 of ment program supported by city departments in the the Cranston-Gonzales National Affordable Housing 2004 budget is the Milwaukee Aids Initiative Act. Primary duties will include the maintenance of ($314,200). a 500 unit rental portfolio, obtaining annual rental and income certifications, as well as scheduling and The 2004 budget assumes $600,000 in reprogram- performing onsite property inspections. This posi- ming funding for the following programs: tion will also be responsible for ensuring compliance with Section 104(d) of the Housing and Community • Department of Neighborhood Services - $50,000; Development Act by creating and maintaining a

• Library – Community Outreach and Technology CBGA residential demolition and replacement log. Center - $50,000; • Police Department - Operation Safe Neighbor- hoods - $500,000.

OBJECTIVE 2 Outcome Indicators and Funding Strengthen Milwaukee’s competitive pos i- tion within the region through a reduction 2002 2003 2004 in the share of Milwaukee’s economy used Experience Budget Projection City tax rate as a percent of 123.0% 122.1% 122.1% for city taxes by adopting a tax rate of no metro area average. more than 122.1% of the metropolitan area Funding by Source: average in 2004. Operating Funds $1,361,066 $1,663,688 $1,246,367 Grant and Reimbursable 379,991 345,526 226,099 OUTCOME HISTORY Capital Budget 38,968 0 0 Total: $1,780,025 $2,009,214 $1,472,466 The 2004 budget provides $1.5 million in funding to support Milwaukee’s efforts to strengthen its competitive position in the market- The department will focus on numerous strategies to place. Milwaukee’s 1998 tax rate (adopted in 1997) meet this objective in 2004 including: 1) imple- totaled 115.9% of the average property tax rate of menting a capital project management system; 2) other municipalities in the metropolitan area, ex- developing an expenditure and revenue report; and ceeding for the first time the city’s tax rate goal of 3) ensuring that a “poverty factor” is included in the 120% of the metropolitan area average. As shown in distribution of state, municipal, and school aids. Figure 2, in the 2000 budget the city again surpassed its goal, adopting a tax rate equal to 116.6% of the ACTIVITIES metropolitan area average. In 2001 and 2002, however, the city tax rate as a percent of the metropoli- • Administration tan area average did not meet its goal. • Budget analysis In 2004, the estimated city tax rate as a percent of the • Capital financing and debt management metropolitan area average is 122.1%. This is the • Intergovernmental relations same as the 2003 projection. Shrinking state aids, • Purchasing increasing health care costs, as well as arbitration • Emerging Business Enterprise Program driven wage settlements that exceed the rate of inflation continue to present major obstacles to the city’s efforts to reduce costs, preserve service levels, and maintain improvement in its tax rate compared to the metropolitan average.

2004 PLAN AND BUDGET SUMMARY 35 DEPARTMENT OF ADMINISTRATION

PROGRAM CHANGES Figure 2

Capital Monitoring System: In 2004, a for- mal capital monitoring system will be im- City Tax Rate as a Percentage of Metropolitan plemented. This system will follow capital Area Average 1991-2004 projects from the planning stages through 140.0% their completion to ensure that projects will 134.6% 135.0% 131.3% be completed on time and on budget. This 129.2% 130.0% 126.8% system will ensure that no capital project is 131.2% 125.0% 127.6% 122.1% funded until a project plan has been com- 123.0% 123.0% pleted and reviewed. The Budget and Policy 120.0% 122.8% 122.2% 122.1% Division will also enact guidelines for capital 115.0% 116.6% projects that will be used by departments in 115.9% 110.0% 113.5% preparing their capital project plans. In an effort to ensure that decisionmakers have 105.0% enough information to make informed deci- 100.0% sions, this capital monitoring system will also 1990 1992 1994 1996 1998 2000 2002 2004* include a reporting process for each capital * Estimate project.

Intergovernmental Cooperation: In 2004, the City of Citywide Purchasing: To coincide with the city’s Milwaukee will continue its work to streamline op- efforts to explore ideas to streamline operations erations across government lines. The city will work across government lines, the city will also explore with Milwaukee County to explore which services ideas to streamline operations internally. In 2004, an might be better provided through a single effort. internal study will be conducted to determine if These services include, but are not limited to, infor- there are opportunities to make the city’s purchasing mation systems, greenhouse operations, procure- activities more efficient. This study will encompass ment activities, the use of the online auction, and the all city purchasing activities conducted by the De- combination of the city’s “live” heavy equipment partment of Administration, Department of City and vehicle auctions. Development, Department of Public Works, Library, and the Port of Milwaukee.

OBJECTIVE 3

Provide services and tools to other city de- Outcome Indicators and Funding partments that lead to improved city man- 2002 2003 2004 agement and maintenance of the city’s fiscal Experience Budget Projection health as measured by maintaining or im- Maintain the city's bond Aa2/AA+ Aa2/AA+ Aa2/AA+ proving the city’s Aa2/AA+ bond ratings in rating. 2004. Funding by Source: Operating Funds $1,251,226 $1,045,812 $1,150,769 OUTCOME HISTORY Grant and Reimbursable 187,160 195,596 199,401 Capital Budget 59,450 0 0 A key indicator of a city’s financial health is Total: $1,497,836 $1,241,408 $1,350,170 its bond ratings. The City of Milwaukee has maintained high investment grade ratings services through user fees, rather than the tax levy, even in the face of declining state aids and a national as the city did with its solid waste expenses. economic downturn. Since the mid-1990’s, the city has worked to improve its financial condition The 2004 budget provides approximately $1.4 mil- through various efforts, including diversifying its lion to support this objective. The new Budget and revenue base. Some significant changes have in- Policy Division will continue to act as a resource for cluded identifying and financing appropriate city other departments to assist in strategic planning,

36 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF ADMINISTRATION developing performance measures, and evaluating color copying provided by in-house staff will be the success and effectiveness of specific programs. eliminated in 2004. Staff will continue to provide some offset printing, paper ordering and delivery, The department will focus on numerous strategies to mail services, and records management to city de- meet this objective in 2004 including: 1) publishing a partments. city Performance Report; 2) implementing the strategies issued by the city’s Strategic Plan; and 3) revis- These changes will result in the elimination of two ing the Residents’ Preference Program. full time positions and two auxiliary positions, all funded through reimbursable funding. The seven ACTIVITIES remaining non-management staff positions will be eliminated and recreated into seven positions of • Information resource policy analysis Document Technician. This change will allow MPR • Intergovernmental lobbying staff to be cross-trained to perform the remaining activities in MPR which are in high demand and • Procurement of goods and services essential to the daily operations of city government. • Printing and records storage The two remaining management positions in MPR • Budget analysis are also retitled to reflect the changed operations. • Strategic planning The MPR change also eliminates the need for the Docutech printer and the color copier leases. As a PROGRAM CHANGES result, funding for these leases has been removed from departmental accounts resulting in tax levy Milwaukee Printing and Records (MPR): In 2004, savings of approximately $82,000. Milwaukee Printing and Records will phase out some of its printing operations and develop several Citywide Printing Services: In a continuing effort master contracts through a competitive process to to streamline city printing services, a feasibility better utilize the city’s collective buying power for study of combining the Police Department Print its printing needs. The section will undergo a name Shop with Milwaukee Printing and Records will be change to Document Services to reflect these conducted in 2004. This study will evaluate the changes. Increased competition in the printing in- printing needs of the Police Department, as well as dustry has resulted in more reasonable costs in the other city departments that receive its services, and marketplace, more convenience copiers located determine if these needs could be met more effi- within city departments’ offices, and decreased reli- ciently and cost effectively by combining them with ance on “hard” copies of documents. All of these the services offered by MPR and the city’s master factors have diminished the need for these opera- printing contracts. The results of this study will be tions to be offered as an internal service. The option used in the development of the 2005 budget for city departments to have high speed copying and

OBJECTIVE 4

Manage information and information sys- Outcome Indicators and Funding tems more effectively so as to maximize 2002 2003 2004 their value to city residents and city d e- Experience Budget Projection partments by increasing the number of per- Number of "visits" on the city's 2,297,342 3,000,000 3,300,000 sons visiting the city web site to 3,300,000 in web site. Number of service requests 2,453 15,000 15,000 2004. received and processed through the city's web site. OUTCOME HISTORY Funding by Source: Since the 2000 reorganization that created the Operating Funds $5,657,771 $5,474,096 $4,692,775 Information and Technology Management Grant and Reimbursable 394,427 318,810 492,629 Division (ITMD), the division’s role has Capital Budget 466,196 1,811,500 630,000 Special Purpose Accounts 76,330 130,000 50,000 slowly but steadily evolved. Once solely a Total: $6,594,724 $7,734,406 $5,865,404 provider of information and technology

2004 PLAN AND BUDGET SUMMARY 37 DEPARTMENT OF ADMINISTRATION

services to internal city departments, ITMD can now • FMIS Efficiency – Cost per enterprise system serve citizens directly, through the city’s web site. transaction; ITMD has also become a leader in developing Mil- • System Security – Security threats repelled at waukee’s e-government capabilities, a coordinator of firewall; citywide initiatives, and a facilitator in seeking • Disaster Planning – Percent of city departments broader acceptance of citywide information man- with complete disaster recovery plans; and agement standards. • Corporate Database Usage – Amount of disk Guided by the citywide Strategic Information Plan, space needed for corporate database tables. ITMD advises policymakers on information related issues, coordinates departmental information sys- ACTIVITIES tems, and evaluates requests for technology improvements. The division also maintains existing • Information policy and administration infrastructure systems and applications, including • City information systems “CityWeb”, Milwaukee’s presence on the World • Department information systems Wide Web, and the financial, human resource and purchasing components of the PeopleSoft Enterprise PROGRAM CHANGES System. In addition, ITMD continues to provide limited support services, offering desktop and net- Financial Management Information System work systems maintenance to departments that lack (FMIS): Beginning in late 2003, the City of Milwau- the internal resources needed to maintain their own kee will implement a five year contract for the main- systems. The 2004 budget provides approximately tenance and support of the city’s FMIS system. It is $5.9 million to support this objective. estimated that this contract will save more than $500,000 over the course of the contract. By allowing The department will focus on numerous strategies to an outside entity to maintain the FMIS hardware and meet this objective in 2004 including: 1) expanding software, city staff may focus on how to use the e-government services to include online and phone product better. In addition, this contract provides access to payments and services; and 2) developing system reliability, disaster recovery, improved sys- and implementing a plan for the City of Milwaukee tem performance, and cost stability and predictabil- to be at the forefront of broadband technology. ity over the course of the contract. Program Result Measures: To coincide with ITMD Reorganization: In addition to changes re- ITMD’s reorganization, the division is revising its lated to the DOA reorganization, ITMD is undergo- program result measures in 2004 to reflect the city’s ing a major reorganization in 2004. The division’s increased focus on information policy administration six existing sections will be eliminated and replaced and e-government. with three new sections (Policy and Administration, Citywide Information Systems, and Infrastructure Beginning in 2004, ITMD will track performance in and Technology Development). This reorganization several critical services areas using the following is necessary to reflect the changing information tech- measures: nology environment as well as to reflect the city’s increased focus on information policy administration • Web Site Usability – Percent of city departments and e-government. using standardized web page design; • Web Site Utility – Number of applications that Position Changes: In addition to the position allow users to conduct transactions, request changes resulting from ITMD’s reorganization, the services, and obtain information interactively 2004 budget includes the elimination of a Systems from the city’s web site; Analyst/Project Leader position associated with the • Asset Management – Percent of city departments COMPASS Project. One vacant position of Systems with comprehensive information technology as- Analyst Senior is also eliminated and one position of set inventory; Security Administrator is transferred to the Comp- troller’s Office.

38 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF ADMINISTRATION

OTHER ACTIVITIES AND CHANGES

Departmental Reorganization: DOA will undergo a Many staffing changes result from this reorganiza- major reorganization in 2004. As part of this reor- tion. One new position of Budget and Policy Direc- ganization, three divisions (Administration, Budget tor is created in the Budget and Policy Division. The and Management, and Intergovernmental Relations) existing positions of Budget and Management and will be eliminated and two new divisions (Budget Intergovernmental Relations Directors are funded and Policy, and Community Block Grant Admini- only for the first nine pay periods of the year. The stration) will be created. The division of Budget and new Budget and Policy Director position is funded Policy will include staff from both the former Budget for the remaining 17 pay periods of the year. Across and Management and Intergovernmental Relations the department, all DOA division heads will be Divisions. The Business Operations Division will funded at salary grade 15 beginning in pay period 1. incorporate the two staff positions of the former This reorganization results in total savings of ap- Administration Division while the Administration proximately $235,000. Director will be transferred to the Budget and Policy Division.

CAPITAL PROJECTS

Upgrade to Financials System: In addition to the ated with web based applications while offering changes to the FMIS system discussed above, the enhanced features and operations. This upgrade City of Milwaukee will also be undergoing a major will also ensure that the city remains eligible for full upgrade to the PeopleSoft’s Version 8 of the finan- PeopleSoft support for all its resource management cials module in 2004. Like the previously installed systems. The 2004 capital budget includes $630,000 Version 8 on the human resources side, this upgrade for this purpose. will introduce to the system the ease of use associ-

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 70.99 75.43 67.05 -8.38 FTEs - Other 36.65 33.92 34.15 0.23 Total Positions Authorized 132 119 108 -11 DLH - Operations and Maintenance 127,790 135,774 120,690 -15,084 DLH - Other Funds 65,970 61,056 61,470 414

EXPENDITURES Salaries and Wages $4,430,557 $4,477,706 $4,006,056 $-471,650 Fringe Benefits 1,640,596 1,656,752 1,482,241 -174,511 Operating Expenditures 904,732 1,039,095 868,291 -170,804 Equipment 95,210 22,880 13,000 -9,880 Special Funds 1,507,318 1,301,836 971,000 -330,836 TOTAL $8,578,413 $8,498,269 $7,340,588 $-1,157,681

REVENUES Charges for Services $3,491,217 $3,605,500 $3,622,150 $16,650 Miscellaneous 271,880 146,500 133,500 -13,000 TOTAL $3,763,097 $3,752,000 $3,755,650 $3,650

CAPITAL PROJECTS - Includes $630,000 for the FMIS Financials Upgrade.

2004 PLAN AND BUDGET SUMMARY 39 DEPARTMENT OF ADMINISTRATION

ORGANIZATION CHART

Mayor

Director of Administration

Information and Budget and Policy Community Block Grant Business Operations Technology Division Administration Division Division Management Division

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason Budget and Policy Division 1 1.00 $101,375 Administration Director Transferred from Administration Division.

1 0.35 $37,772 Budget and Management Director

2 2.00 $117,443 Budget and Management Special Assistant

1 1.00 $84,357 City Economist Transferred from Budget and 1 1.00 $48,929 Fiscal Planning Specialist Management Division. 2 2.00 $91,048 Budget and Management Analyst Lead

1 1.00 $44,678 Office Supervisor II

1 1.00 $40,523 Administrative Services Specialist

1 0.35 $37,772 Legislative Liaison Director

1 1.00 $83,478 Legislative Fiscal Manager Sr Transferred from Intergovernmental Relations Division. 1 1.00 $63,058 Legislative Fiscal Manager

1 Legislative Coordinator Sr (Aux.)

1 1.00 $71,053 Budget and Policy Manager Sr Position reclassified and transferred from Budget and Management Division.

40 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF ADMINISTRATION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

1 1.00 $57,147 Budget and Management Special Assistant Positions retitled and transferred from Budget and Management 1 1.00 $59,457 Fiscal Planning Specialist Sr Division. 1 0.90 0.10 $61,098 $7,000 Budget and Policy Manager

1 1.00 $47,604 Administrative Specialist Position retitled and transferred from Intergovernmental Relations Division.

1 0.65 $50,963 Budget and Policy Director Position created to administer new division. Community Block Grant Administration Division 1 1.00 $85,549 Block Grant Director

1 1.00 $81,633 Associate Director

1 1.00 $67,985 Grant Compliance Manager Transferred from Administration 6 6.00 $303,805 Grant Monitor Division. 1 1.00 $33,101 Administrative Assistant I

1 1.00 $38,175 Program Assistant I

2 2.00 $99,393 Administrative Specialist Sr

1 1.00 $35,209 Office Assistant IV Transferred from Intergovernmental Relations Division.

1 1.00 $39,793 Rental Rehabilitation Specialist New position to perform HUD- regulatory mandated functions.

Administration Division -1 -1.00 $-101,375 Administration Director Transferred to Budget and Policy Division.

-1 -1.00 $-61,451 Management and Accounting Officer Transferred to Business Operations Division. -1 -1.00 $-39,013 Administrative Assistant III

-1 -1.00 $-83,058 Block Grant Director

-1 -1.00 $-79,256 Associate Director

-1 -1.00 $-66,005 Grant Compliance Manager Transferred to Community Block -6 -6.00 $-294,956 Grant Monitor Grant Administration Division. -1 -1.00 $-32,137 Administrative Assistant I

-1 -1.00 $-37,063 Program Assistant I

-2 -2.00 $-96,497 Administrative Specialist Sr

2004 PLAN AND BUDGET SUMMARY 41 DEPARTMENT OF ADMINISTRATION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-2 -1.00 $-29,332 Office Assistant II Elimination of vacant positions.

Budget and Management Division -1 -1.00 $-35,522 Program Assistant I Position eliminated due to reorganization.

-1 -1.00 $-70,880 Budget and Management Team Position reclassified and Leader transferred to Budget and Policy Division.

-1 -1.00 $-57,147 Capital Planning and Finance Specialist Positions retitled and transferred to -1 -1.00 $-59,457 Program Evaluation Specialist Budget and Policy Division. -1 -0.90 -0.10 $-61,098 $-7,000 Budget and Management Team Leader

-1 -1.00 $-97,045 Budget and Management Director

-2 -2.00 $-117,443 Budget and Management Special Assistant

-1 -1.00 $-84,357 City Economist Transferred to Budget and Policy -1 -1.00 $-48,929 Fiscal Planning Specialist Division.

-2 -2.00 $-91,048 Budget and Management Analyst Lead

-1 -1.00 $-44,678 Office Supervisor II

-1 -1.00 $-40,523 Administrative Services Specialist

Business Operations Division -1 -1.00 $-32,615 Purchasing Assistant II Positions eliminated due to department reorganization. -1 -0.50 $-16,307 Purchasing Assistant II (0.5 FTE)

1 1.00 $61,451 Management and Accounting Officer Transferred from Administration Division. 1 1.00 $39,013 Administrative Assistant III

-1 -1.00 $-43,641 Printing Operations Supervisor

-1 -1.00 $-65,495 Printing and Records Manager

1 1.00 $65,195 Document Services Manager Positions changes resulting from the reorganization of Milwaukee -1 -1.00 $-47,604 Microfilm Supervisor Printing and Records to Document Services. 1 1.00 $47,604 Records Supervisor

-1 -1.00 $-33,723 Lead Offset Press Operator

-1 -1.00 $-33,723 Duplicating Equipment Operator II

42 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF ADMINISTRATION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-31,360 Mail Processor

-1 -1.00 $-33,378 Microfilm Technician II Positions changes resulting from -1 -1.00 $-31,888 Microfilm Technician I the reorganization of Milwaukee Printing and Records to Document -1 -1.00 $-29,332 Microfilm Processor Services. -1 -1.00 $-31,613 Computer Assistant I

7 7.00 $229,254 Document Technician

-1 -1.00 $-26,191 Mail Processor

-1 Offset Press Operator II (Aux.) Elimination of vacant positions.

-1 Mail Processor II (Aux.)

Intergovernmental Relations Division -1 -1.00 $-60,397 Legislative Fiscal Manager Elimination of vacant position.

-1 -1.00 $-110,996 Legislative Liaison Director

-1 -1.00 $-83,478 Legislative Fiscal Manager Sr Transferred to Budget and Policy Division. -1 -1.00 $-63,058 Legislative Fiscal Manager

-1 Legislative Coordinator Sr (Aux.)

-1 -1.00 $-47,604 Office Supervisor II Position retitled and transferred to Budget and Policy Division.

-1 -1.00 $-34,183 Office Assistant IV Transferred to Community Block Grant Administration Division.

Information and Technology -1 -1.00 $-84,553 Information Resource Manager

1 1.00 $84,553 Policy and Administration Manager

-1 -1.00 $-90,107 Systems Analyst Manager

1 1.00 $90,107 Applications Development Manager

-1 -1.00 $-82,012 Geographic Information Systems Manager Position changes resulting from divisional reorganization. 1 1.00 $82,012 Corporate Information Systems Manager

-1 -1.00 $-48,101 City Web Administrator

1 1.00 $48,221 Internet Services Coordinator

-1 -1.00 $-48,031 Programmer II

1 1.00 $48,772 Programmer Analyst

2004 PLAN AND BUDGET SUMMARY 43 DEPARTMENT OF ADMINISTRATION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-109,118 Information Systems Manager

1 1.00 $96,041 Enterprise Systems Manager Position changes resulting from -1 -1.00 $-94,364 Enterprise Systems Manager divisional reorganization. 1 1.00 $90,107 Systems Analyst Manager

-1 -1.00 $-69,792 Systems Analyst Sr

1 1.00 $71,012 Systems Analyst Lead

-1.00 1.00 $-60,061 $60,060 Systems Analyst Sr Position changes resulting from divisional reorganization. -0.50 0.50 $-28,150 $28,150 Programmer Analyst

-0.84 0.84 $-68,641 $68,641 Systems Analyst/Project Leader

-1 -1.00 $-58,638 Systems Analyst/Project Leader Elimination of vacant positions. -1 -1.00 Systems Analyst Sr

-1 -1.00 $-69,792 Security Administrator Function transferred to Comptroller's Office.

1.11 -0.11 Experience Adjustment -11 -8.38 0.23 $-502,282 $98,657 TOTAL

44 2004 PLAN AND BUDGET SUMMARY ASSESSOR’S OFFICE

EXECUTIVE SUMMARY

MISSION: To administer the city’s assessment program in a manner that assures public confidence in the accuracy, efficiency, and fairness of the assessment process.

STRATEGIC Ensure that cost for municipal services are distributed equally among all those who receive ISSUES: such services by uniformly valuing all taxable property in the city, closely scrutinizing proposed property tax exemptions, and efficiently processing assessment appeals.

Add value to the city by providing services and information to the public, other city departments, and public agencies.

INITIATIVES Conduct a citywide revaluation. FOR 2004: Connect the different components of the assessment system together to enable more user friendly access and to facilitate office restructuring.

Continue to streamline the department’s operations, increasing productivity due to the change in Property Appraiser classifications.

Pursue service agreements with other Milwaukee County communities.

Develop fees for processing tax exempt property applications and non-compliance charges for personal property reporting.

BACKGROUND

The Assessor’s Office is responsible for uniformly Another major function of the Assessor’s Office is to and accurately assessing all taxable property in the provide public information and assistance. The As- City of Milwaukee. Accurate assessments ensure sessor’s Office continues to focus on more efficient, that all areas of the city and all classes of property user friendly methods to provide this service. By equitably share responsibility for property taxes. using technology to make this information readily available, the Assessor’s Office has significantly re- In recent years, the department has focused on im- duced the number of assessment objections and tele- proving its valuation systems by upgrading and mi- phone calls for data while dramatically increasing grating from the mainframe computer. By maxi- the availability of property information and the mizing technology, the department has been able to number of customers serviced via the Internet. improve quality while reducing costs.

OBJECTIVE 1

To produce equitable, accurate, fair, and unde r- uitable. This results in every property paying only standable assessments by focusing on each of the its fair share for the municipal services financed four components of the assessment program. through the property tax. To accomplish its objective, the Assessor’s Office focuses on four primary OUTCOME HISTORY components of the assessment program: assessments, appeals, exemptions, and public information. The primary objective of the Assessor’s Office is to In 2004, the Assessor’s Office will dedicate establish assessments that are fair, accurate, and eq- $4,120,568 in operating funds and $500,000 in special

2004 PLAN AND BUDGET SUMMARY 45 ASSESSOR’S OFFICE

purpose account funding to accomplish this Outcome Indicators and Funding objective. 2002 2003 2004 The assessment component includes ongoing Experience Budget Projection inspection of real property and maintenance Assessment level. 96.1% 100.0% 100.0% of all property and ownership records. Ac- Coefficient of dispersion. 9.35 <9.0 <9.0 Price related differential. 1.02 1.00 1.00 tivities also include review and field verifica- Average Internet hits per year. 1,489,880 1,750,000 1,800,000 tion of sales; inspection of properties for which building permits have been issued; Funding by Source: ongoing analysis of sales data and assessment Operating Funds $4,947,547 $4,603,519 $4,120,568 equity; audits of personal property; process- Special Purpose Accounts 500,000 500,000 500,000 ing personal property returns; and creating Total: $5,447,547 $5,103,519 $4,620,568 real and personal property assessment rolls.

The performance of the Assessor’s Office in Figure 1 producing fair, accurate, and equitable assessments is measured statistically using assessment ratios. An analysis of assessments City of Milwaukee Assessor's Office Coefficient of to sales is used in determining the assessment Dispersion as a Measure of Assessment Accuracy level (calculated by dividing the assessment by the sale price). Measuring the coefficient 14 of dispersion and the price related differen- * 12 tial against the assessment level further tests the uniformity of the assessment roll. The 10 coefficient of dispersion measures the average distance that sales are from the median 8 sales ratio (see Figure 1). For example, if the 6 target is an assessment level of 100%, and the coefficient of dispersion is 10, this means that 4 the average assessment is within 10% of the 2 target of 100%. 1997 1998 1999 2000 2001 2002 2003 2004 * Excellent Equity per Industry Standards Estimate Estimate The price related differential is a statistical measure used to determine the degree to which assessments are either regressive or Figure 2 progressive. An assessment is defined to be regressive if low dollar value property is generally over assessed while high dollar Assessment Appeals Board of Assessors value property is under assessed. A progres- 1964 - 2003 Revaluation Cycles sive assessment is the reverse situation. The 13,000 12,270 target of the calculation is one. If it is greater 11,000 than one, the assessment is regressive, if it is 9,908 10,260 less than one, the assessment is progressive. 9,000 The Assessor’s Office has consistently met or 8,942 exceeded both statutory and industry stan- 6,971 7,917 7,000 dards for these measures indicating a high 6,976 5,917 6,003 4,774 4,718 degree of accuracy in valuing property. 5,000 3,559 3,629

The second component of the assessment 3,000 program focuses on assessment appeals. 2,398 2,487 Both the Wisconsin State Constitution and 1,000 state law require an appeal process for those 1964 1968 1974 1978 1982 1984 1988 1990 1992 1994 1996 1998 2000 2002 2003 wishing to contest the assessment of their property. The Board of Assessors and the

46 2004 PLAN AND BUDGET SUMMARY ASSESSOR’S OFFICE

Board of Review hear appeals affording citi- Figure 3 zens the opportunity to voice concerns or contest an assessment. Figure 2 shows the Annual Number of Internet Queries total number of assessment appeals to the 1997 - 2004 Board of Assessors for each revaluation cycle between 1964 through 2003. Moving to an- 2,100,000 1,800,000 nual revaluations tends to decrease the per- 1,900,000 1,750,000 centage of appeals overall. This has proven 1,700,000 to be the case as the 2003 appeal numbers at 1,489,880 1,500,000 2,487 were about 1.5% of property assessed. Municipalities that have annual revaluations 1,300,000 1,095,489 typically find that the appeal numbers con- 1,100,000 941,838 900,000 tinue to dwindle as yearly revaluations be- 682,221 700,000 come the norm. 468,303 500,000 248,535 In recent years, efforts have focused on im- 300,000 proving assessment accuracy, providing 100,000 1997 1998 1999 2000 2001 2002 2003 2004 public information and education, and in- Estimate Estimate creasing access to assessment and sales data so as to reduce the number of objections. tion requirements continue to be met so that exemp- These efforts have resulted in over an 80% reduction tions are properly earned and granted. in appeals between the 1988 and 2003 revaluations (see Figure 2). Although since the 2000 revaluation, The final component of the assessment program is appeals have increased from 1998. This is attribut- providing public information and education to in- able to property values increasing rapidly and state crease understanding of assessments and the as- aids, which are available to municipalities, decreas- sessment process. The Assessor’s Office has found ing. The Assessor’s Office remains committed to that computer technology enhances its ability to de- reducing objections and appeals by increasing op- liver efficient, customer focused service. Automa- portunities for customer access to information. tion of some processes via the Internet, electronic updating of ownership data, and distribution of as- The Assessor’s Office is also responsible for review- sessment information at local libraries have all ing requests for tax exemption to determine eligibil- proven effective at increasing access to property in- ity. In accordance with Chapter 70 of Wisconsin formation while increasing efficiency. Since the in- State Statutes, certain properties are exempt from ception of Internet based property information, the taxation as determined by the Wisconsin State Leg- Assessor’s Office has experienced dramatic annual islature. In the City of Milwaukee, there are ap- increases in the total number of Internet queries (see proximately 7,000 tax exempt properties with an es- Figure 3). The increase in Internet usage indicates timated value of $3.5 billion, an increase of 36% since the level of public information provided by the As- 1985. sessor’s Office. The department expects usage to increase in 2004. To protect the city’s tax base, the Assessor’s Office critically reviews all tax exemptions on an ongoing ACTIVITIES basis to ensure that all exempt properties continue to serve the public good and provide the services that rendered them tax exempt. Ongoing reviews are • Assessment of property necessary to protect all taxpayers in the city that • Processing assessment appeals subsidize tax exempt properties. As an important • Determining eligibility for exemption yet costly component of the assessment program, the • Providing public information and education Assessor’s Office continually strives for greater efficiency in issuing, monitoring, and classifying prop- PROGRAM CHANGES erty tax exemptions. In 2004, the Assessor’s Office will work to enhance the computerization of the ex- State Mandated Payment for Manufacturing A s- emption process and streamline it with the existing sessments: The State of Wisconsin is responsible for valuation system. This will assure that the exemp- the assessment of real and personal property of

2004 PLAN AND BUDGET SUMMARY 47 ASSESSOR’S OFFICE manufacturing properties. Beginning in 2004, the appraise all types of properties rather than special- state will charge local communities for this service. izing in one class of property. This should create The cost to the city is $75,000. The 2004 budget in- greater flexibility in assigning work and dividing cludes $75,000 for the city’s payment of this new tasks. state mandated service fee. For 2004, implementation involves technical training Complete Mainframe Conversion: As resources for all Appraisal staff on property types, valuation become available, the Assessor’s Office will be add- methodologies, and valuation systems as well as a ing exempt information as a component of the Prop- “Learning Partner Program”. This combined class- erty Valuation System. This will allow for more room and one-on-one training will result in a smooth up-to-date exempt property valuation. In addition transition to the broader assignments required for to adding this component, the Assessor’s Office will annual revaluations. This restructuring, along with work to tie together individual valuation systems to increased efficiencies and prioritization will further create a seamless system where modifications coin- reduce staff by five Appraisers, three Administrative cide with the appraiser classification changes. support staff, and one Supervising Assessor for savings of $301,787. Annual Revaluations: An ideal property assessment program is one in which assessments are up- Fees for Service: The department will seek changes dated annually to assure all properties are assessed in state law to allow charges for tax exempt property at market value. In 2004, the city will provide the application processing and non-compliance of per- second annual revaluation. This will result in even sonal property reporting requirements. Not only greater equity in distributing costs for city services. will these fees generate revenue for the city but they will also reduce the number of questionable tax ex- Implement Department Restructuring: In 2004, the emption applications and encourage personal prop- Assessor’s Office will continue the reorganization of erty owners to comply with reporting requirements. the Appraisal staff, which involves extensive cross It is expected that these fees will be implemented training of all Appraisers in the department. Every sometime in 2004. Appraiser needs knowledge, skills, and abilities to

BUDGET SUMMARY CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 61.33 57.66 48.55 -9.11 FTEs - Other 0.00 0.00 0.00 0.00 Total Positions Authorized 70 65 56 -9 DLH - Operations and Maintenance 114,077 103,800 87,400 -16,400 DLH - Other Funds 0 0 0 0

EXPENDITURES Salaries and Wages $3,295,782 $3,047,434 $2,724,779 $-322,655 Fringe Benefits 1,191,470 1,127,551 1,008,168 -119,383 Operating Expenditures 361,689 338,534 267,621 -70,913 Equipment 0 0 0 0 Special Funds 98,606 90,000 120,000 30,000 TOTAL $4,947,547 $4,603,519 $4,120,568 $-482,951

REVENUES

Charges for Services $31,154 $1,000 $2,000 $1,000 TOTAL $31,154 $1,000 $2,000 $1,000

CAPITAL PROJECTS - None

48 2004 PLAN AND BUDGET SUMMARY ASSESSOR’S OFFICE

ORGANIZATION CHART

Mayor Board of Review (Five Members)

Assessment Commissioner

Systems and Administration Divi- Assessment Division sion

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason -3 -3.00 $-69,128 Senior Property Appraiser

-2 -2.00 $-80,377 Property Appraiser

-2 -2.00 $-56,148 Office Assistant II Reorganization. -1 -1.00 $-63,519 Supervising Assessor Assistant

-1 -1.00 $-32,615 Account Assistant I

-0.11 Miscellaneous -9 -9.11 $-301,787 TOTAL

2004 PLAN AND BUDGET SUMMARY 49 CITY ATTORNEY

EXECUTIVE SUMMARY

MISSION: To provide quality legal services and successfully meet clients’ needs in accordance with the city charter and statutory requirements.

STRATEGIC Improve effectiveness of office management and procedures through enhanced technology ISSUES: and increased productivity.

Provide quality legal services to clients.

Effectively address city liability issues.

INITIATIVES Implement reorganizations of City Attorney management and support staffs to consolidate FOR 2004: legal functions and increase efficiency.

Establish a citywide protocol for in rem property tax foreclosures.

Continue to utilize the Parking Citation Review Manager position to increase customer service for those with parking citations.

BACKGROUND

The City Attorney is a publicly elected official who and examines legislation for the Common Council. serves a four year term. The City Attorney conducts In addition, the City Attorney is responsible for all of the legal business for the city and its “clients”, drafting all legal documents that are required in including departments, boards, commissions, and conducting the business of the city, collecting claims other agencies of city government. The City Attor- and delinquencies, and prosecuting violations of city ney’s Office handles city litigation and keeps a ordinances. The City Attorney’s Office is also re- docket of cases to which the city may be a party, sponsible for the city’s liability risk management provides legal advice and opinions, and prepares function.

OBJECTIVE 1

To protect the legal interests of the city and Outcome Indicators and Funding its various agencies, departments, boards, and commissions by increasing the percent 2002 2003 2004 of cases resolved by pre-trial evaluation to Experience Budget Projection Cases resolved by pre-trial 60.0% 59.0% 59.0% 59% and decreasing the percent of claims evaluation. which result in lawsuits to 5% in 2004. Claims that result in 6.8% 4.0% 5.0% lawsuits (reflects claims OUTCOME HISTORY filed three years prior).

The primary objective of the City Attorney’s Funding by Source: Office is to protect the legal interests of the Operating Funds $6,130,966 $6,437,106 $6,301,050 City of Milwaukee. The 2004 budget allo- Grant and Reimbursable 0 0 72,237 cates $11.3 million towards this purpose. To Capital Budget 89,082 0 0 reflect the focus of its activities and pro- Special Purpose Accounts 5,332,623 4,725,000 4,950,000 grams, the department has two indicators Total: $11,552,671 $11,162,106 $11,323,287

50 2004 PLAN AND BUDGET SUMMARY CITY ATTORNEY

that will measure achievement of this objec- Figure 1 tive. The first is the percent of cases resolved by pre-trial evaluation. After a defendant has passed through intake, the City Attorney’s Cases Resolved by Pre-Trial Evaluation Office tries to resolve the case without further (1993-2002) court appearances. If cases can be resolved in 64% this manner, court time can be used for more 62% serious offenses. As Figure 1 shows, from 60% 1993 to 1995 the percent of cases resolved by 58% pre-trial evaluation steadily increased. This percentage increased again in 2000, then re- 56% turned to 1997-1999 levels in 2001. In 2002, 54%

60% of cases were resolved by pre-trial 52% evaluations, a slight increase over the 2001 50% level. 48% The second measure is the percent of claims 46% filed three years prior that result in lawsuits. 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 When claims between the city and claimant cannot be resolved, they expose the city to increased liability and additional time spent in court. • Municipal and circuit court prosecutions Therefore, it is in the best interests of the city to • Case review minimize the number of claims that proceed to liti- • Continuing legal education gation. However, claimants have three years after filing a claim to file a lawsuit. In 2002, 6.8% of all PROGRAM CHANGES claims filed against the city resulted in a lawsuit. The City Attorney’s goal is to lower this percentage to 5% by 2004. Reorganization of City Attorney Management and Support Staffs: In 2003, the City Attorney reorgan- ACTIVITIES ized its legal management team. The reorganization consolidated the office’s legal sections from four to • three in an effort to more closely align related areas Prepare and review corporate and general of work. While this reorganization was approved by documents the Common Council in 2003, the 2004 budget re- • Special legal services flects these position changes and the savings gener- • Police legal services ated $-130,752. • Legislation review • Meetings attended and client counseling The budget also reflects a reorganization of the City Attorney’s support staff. The goal of this reorgani- • Risk management zation is to streamline the support staff according to • Outside counsel/expert witness legal function. As part of this reorganization, one • Represent the city in litigation cases position of Administrative Specialist Senior is cre- • Liability claims ated and a Legal Office Assistant IV and Legal Office • Civil actions Assistant II position are eliminated for savings of • Administrative hearings $-37,888. • Litigation documents Establish a Protocol for In Rem Actions: The City • Collection enforcement Attorney’s Office has been working with other city • Real estate taxes departments to develop a protocol for proactive use • Eviction and rent collection of in rem property tax foreclosures. The protocol • Collection contract will establish criteria to determine which tax delin- • Mortgage foreclosures quent properties to proceed against an in rem, rather than an in personam, basis. The goal of the protocol • Other collection cases in rem • is to use remedy actions effectively, in a pro- Ordinance violation prosecution active and cost effective manner, to achieve certain

2004 PLAN AND BUDGET SUMMARY 51 CITY ATTORNEY community improvement goals such as brownfield Parking Citation Review Update: The 2003 budget redevelopment; blight and nuisance elimination; and transferred the Parking Citation Review Manager development and improvement. position to the Ordinance Enforcement Division of the City Attorney’s Office. Experience has shown As part of that process, the City Attorney may need that this transfer has been extremely successful in to bring separate in rem actions that are apart from meeting the original goals set for this position. The the regular in rem filings by the City Treasurer. The position has significantly decreased the time Assis- costs associated with proceeding with those com- tant City Attorneys work on parking citation related munity improvement in rems will be borne by the matters, resulting in the reassignment of one posi- department requesting the filing. In 2003, a resolution to the main office in City Hall to concentrate on tion will be presented to the Council directing the more pressing legal duties such as court appear- City Attorney to finalize that protocol and to coordi- ances, appeals, civil litigation, and legal opinions. nate interdepartmental in rem efforts. Finally, the position has been able to improve customer service through more consistent decision making for ticket challenges and decreasing wait time for review appointments.

OTHER ACTIVITIES AND CHANGES

Special Purpose Accounts: The City Attorney is personnel cleared of wrongdoing. The 2004 budget responsible for administering six special purpose decreases funding for this account by $25,000 to accounts: Damages and Claims Fund, Outside $75,000, reflecting current and expected needs. Counsel and Expert Witness Fund, Fire and Police Discipline and Citizen Complaint Fund, Insurance The 2004 budget includes $700,000 for the Insurance Fund, Collection Contract, and Receivership Fund. Fund, an increase of $100,000 from 2003. This fund pays city premiums for policies such as; property The Damages and Claims Fund pays for general insurance, auto liability, and public officials bonds. liability judgments against the city. In 2004, funding Funding for the Insurance Fund is based on esti- will total $2.4 million, maintaining the 2003 funding mated premium increases. level. Funding reflects average expenditures from previous years while also considering more recent The 2004 budget also allocates $1.25 million for the legal trends. Collection Contract Special Purpose Account, an increase of $250,000 from the 2003 budget. This in- The Outside Counsel and Expert Witness Fund is crease reflects the impact of the tax intercept pro- funded at $225,000 in 2004. This account funds the gram, which has generated over $1.9 million in reve- costs of other law firms when the city needs to retain nue for the city in the first six months of 2003. outside counsel, as well as witnesses who have expertise in certain fields. The Receivership Fund pays for costs related to property abatement, related services and supplies, The Fire and Police Discipline and Citizen Complaint and continuing obligations of previous receiverships. Fund pays the legal defense expenses for exonerated The fund contains $300,000 for 2004, a decrease of Police and Fire personnel allowing the city to more $100,000 from 2003 levels. clearly track Police Officer and Fire Fighter investigations and the subsequent legal fees paid for sworn

52 2004 PLAN AND BUDGET SUMMARY CITY ATTORNEY

BUDGET SUMMARY CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED PERSONNEL FTEs - Operations and Maintenance 66.51 54.80 58.40 3.60 FTEs - Other 0.00 1.00 1.00 0.00 Total Positions Authorized 67 65 61 -4 DLH - Operations and Maintenance 96,966 98,640 105,120 6,480 DLH - Other Funds 0 1,800 1,800 0 EXPENDITURES Salaries and Wages $4,307,766 $4,287,952 $4,211,208 $-76,744 Fringe Benefits 1,227,292 1,586,542 1,558,147 -28,395 Operating Expenditures 516,814 507,612 488,695 -18,917 Equipment 66,422 55,000 43,000 -12,000 Special Funds 12,672 0 0 0 TOTAL $6,130,966 $6,437,106 $6,301,050 $-136,056 REVENUES Charges for Services $942,722 $322,900 $373,300 $50,400 TOTAL $942,722 $322,900 $373,300 $50,400

CAPITAL PROJECTS - None

ORGANIZATION CHART

City Attorney

Deputy City Attorney Deputy City Attorney Deputy City Attorney

Litigation Employment Labor Education Ordinance Benefits Development Enforcement General Services

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason 2 2.00 $237,510 Deputy Chief Attorney Reorganization of City Attorney management (approved in 2003). -3 -3.00 $-368,262 Special Deputy City Attorney

1 1.00 $40,752 Administrative Specialist Sr Reorganization of City Attorney -1 -1.00 $-42,620 Legal Office Assistant IV support staff. -1 -1.00 $-36,020 Legal Office Assistant II

-1 Assistant City Attorney (Aux.) Position authority no longer needed. -1 Paralegal

5.60 Various Positions Refinement of FTE calculation. -4 3.60 $-168,640 TOTAL

2004 PLAN AND BUDGET SUMMARY 53 DEPARTMENT OF CITY DEVELOPMENT

EXECUTIVE SUMMARY

MISSION: To improve the quality of life in Milwaukee by guiding and promoting development that creates jobs, builds wealth, and strengthens the urban environment and at the same time respects equity, economy, and ecology.

STRATEGIC Promote an economic climate that fosters lasting investment, innovation, and job creation. ISSUES: Lead the community’s development related, decision making processes to achieve a productive balance between competing land uses and economic interests, ensuring that the physical and economic growth of the city adds value in the urban context.

Enhance and expand the city’s housing assets.

Ensure processes, reviews, and approvals are efficient, consistent, and user friendly.

INITIATIVES Continue implementation of the Menomonee Valley Plan and the Downtown Plan. FOR 2004: Cluster residential and commercial development throughout the city. In 2004, the clustering of neighborhood economic development resources will be invested through a new competitive Neighborhood Commercial Revitalization Program, tentatively named the Citywide Main Street Program.

Facilitate construction of market rate, owner occupied housing throughout downtown and neighborhoods, including the Third Ward, Beerline B, Midtown, Lindsay Heights, and Merrill Park.

Facilitate development of public and private lands at the Fond du Lac and North Neighbor- hood Plan area and 27th and Wisconsin; also redevelopment of the city’s major shopping centers including the Shops at Grand Avenue and Granville Station.

Work with partners to advance the region’s technology based economy and sell Milwaukee as a desirable place to live, work, and play.

Continue construction of the RiverWalk north and south of downtown.

Continue to market Milwaukee’s mainstreets as viable commercial districts and actively recruit retailers to these areas.

Continue preparation of the citywide comprehensive plan and begin two neighborhood plans.

BACKGROUND

The Department of City Development (DCD) has a program and project in which DCD is involved re- wide range of responsibilities in housing, planning, quires cooperative efforts with citizens, businesses, development, business assistance, and marketing. and neighborhoods. While these are diverse responsibilities, nearly every

54 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF CITY DEVELOPMENT

One aspect of DCD’s active partnership is its Figure 1 provision of assistance to commissions, authorities, and citizen boards. DCD’s activi- DCD 2004 Resources ties include administration and support for $106 Million the: Public Housing Operations • Housing Authority 41.6% • Redevelopment Authority • Milwaukee Economic Development Cor- Rent Assistance Other poration 22.9% 1.9% • Neighborhood Improvement Develop- Operating Funds ment Corporation 3.8%

Capital In addition, DCD provides advisory and other Block Grant Funds Improvements 7.2% 22.6% support to:

• City Plan Commission • Historic Preservation Commission senting 22.6% of DCD’s resources. In addition to city • Milwaukee Arts Board resources, the department expects to administer ap- • Board of Zoning Appeals proximately $78 million from a variety of non-city • Business Improvement Districts funding sources, including federal block grant funds • Fourth of July Commission ($7.7 million), federal rent assistance funds ($24.3 • Common Council Committee on Economic De- million), federal public housing funds ($44.1 million), velopment and other grants ($2 million). In total, DCD anticipates that it will receive and have responsibility for City funding to support the department’s operating approximately $104.4 million in funding for fiscal efforts represents only a small portion, roughly 3.8% year 2004. DCD also oversees $491,000 in special of the total resources it controls and uses to fulfill its purpose accounts and $4.8 million in the Economic mission (Figure 1). This amount does not include Development Fund used by the department and approximately $24 million in capital funds, repre- other organizations.

OBJECTIVE 1

Promote an economic climate that fosters Outcome Indicators and Funding lasting investment, innovation, and job cre a- tion in the City of Milwaukee, as measured 2002 2003 2004 by creating and retaining 4,000 jobs in 2004. Experience Budget Projection Private investment for $7.44 $8.00 $8.00 OUTCOME HISTORY every city dollar. Jobs retained. 1,207 2,300 2,300 Jobs created. 1,026 1,700 1,700 One of DCD’s objectives is to facilitate the creation of job opportunities for Milwaukee Funding by Source: residents. When DCD provides assistance to Operating Funds $2,183,227 $1,716,852 $1,112,334 Grant and Reimbursable 4,588,460 3,639,200 4,584,104 businesses through loans, façade grants, tax Capital Budget 17,089,237 16,500,000 23,600,000 exempt bonds, development zone tax credits, Special Purpose Accounts 4,271,014 516,000 491,000 and other programs, it tracks the number of Total: $28,131,938 $22,372,052 $29,787,438 jobs created and retained as a result of its actions.

2004 PLAN AND BUDGET SUMMARY 55 DEPARTMENT OF CITY DEVELOPMENT

During 2002, DCD worked stringently with Figure 2 numerous businesses to retain 1,026 jobs and create 1,207 new jobs within the city. DCD Jobs Directly Retained and Created Due to DCD also measures its effectiveness in attracting Business Assistance Programs jobs by tracking the amount of private investment generated by city programs. Of the 7,000 businesses that received assistance in 2002, they invested a total of $475 million in Mil- 6,000 waukee. On average, for every dollar that 5,000 DCD programs provided, private companies 4,000 invested $7.44 of their own funds in their project. When MEDC activities are included, 3,000 every dollar invested in 2002 increased to 2,000 $10.54. In 2004, $1.1 million of DCD operating 1,000 resources will contribute to a total of $29.8 million of total city resources focused on this 0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 private investment and job creation objective. Jobs Retained Jobs Created

ACTIVITIES from city to direct HACM or RACM funding. This • Market Milwaukee as a business location produces operating salary savings of $89,623. To • Economic Development Business Assistance better reflect their responsibilities, various other positions in the General Management and Policy De- • Make loans to businesses (MEDC) velopment Decision Unit and Community Planning • Provide development zone certification and Development Services Decision Unit will experi- • Provide bonds (RACM) ence funding changes that total $269,041 in operating • Develop/market industrial land (MEDC) salary savings. • Assemble and cleanup sites • Assist business improvement districts Milwaukee’s Citywide Main Street Program: • Provide other capital resources Throughout 2003, DCD and the Community Block Grant Administration (CBGA) analyzed the city’s • Support to tax incremental districts approach to neighborhood commercial revitalization. • Operate Milwaukee’s Citywide Main Street Pro- It is anticipated that in 2004 a fresh approach, which gram may be similar to the National Main Street Program, PROGRAM CHANGES will be introduced.

Position Changes: DCD intensely pursues economic The Main Street Center’s model for commercial revi- stimulation and development for Milwaukee while talization utilizes a four point approach (organiza- creatively reducing the cost of its operations to the tion, promotion, economic restructuring, and design). city. In 2004, DCD will eliminate in the General This model embraces a competitive selection and Management and Policy Development Decision Unit designation process. As many as four districts could positions of Administrative Assistant I, Urban Devel- be designated in 2004. Subsequently, theses districts opment Manager, Personnel Payroll Assistant II, and would receive a multi-year commitment by the city an auxiliary Real Estate Specialist and Real Estate for technical support, leveraged funding, and basic Analyst Senior. The changes will produce operating organizational funding support. salary savings of $37,203. Also within this decision unit, the positions of Economic Development Policy This new initiative is being designed to bring new Coordinator, Redevelopment and Special Projects resources to neighborhood commercial revitalization, Manager, Small Business Development Officer, Real increase capacity and sustainability of neighborhood Estate Analyst Senior, Relocation Specialist III, Pro- partners, and result in better clustering of develop- gram Monitor, Management Accountant Senior, Ac- ment resources. counting Manager, and Office Assistant III will move

56 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF CITY DEVELOPMENT

Retail Investment Fund (RIF): The RIF Program raise over $4.8 million annually for activities such as continues to successfully leverage private invest- economic development, administration, streetscap- ment, create jobs, and put new businesses in neigh- ing, and public safety projects. borhood commercial districts. Since the fund was established in 1999, a total of $1,161,500 in grants has In 2003 and 2004, the newly formed Atkinson Capitol been awarded to more than 47 small businesses. Teutonia (ACT) Business Improvement District will Those dollars have leveraged an additional $12.2 launch its $870,000 streetscape project funded by a million in private investment and helped create 352 WISDOT Enhancement Grant. BIDs located on East jobs. Of the businesses assisted, 30 have been minor- Capitol Drive (Riverworks), West Burleigh Street, ity-owned and 17 women-owned. In 2002, grants and West North Avenue will complete streetscaping totaling $520,500 have been awarded to 22 busi- projects in their districts. nesses, creating 174 new jobs and leveraging $3.3 million upon completion of the projects. Park East - U.S. Highway 145 Reconfiguration and Redevelopment: The removal of the Park East Free- Citywide Façade Grant: Since its inception in 1998, way opens up 26 acres for development, with a po- the Façade Grant Program has awarded more than tential of more than $250 million in new develop- $3.1 million to more than 350 businesses while lever- ment. The city’s draft “Park East Redevelopment aging approximately $8 million in private invest- Plan”, prepared in 2002, envisions a mix of uses ment. In 2002 and 2003, the program awarded nearly throughout the corridor, including residential, office, $1 million to 100 businesses located throughout the retail, and entertainment. The plan divides the for- city. In 2004, DCD will continue to provide resources mer freeway corridor into three districts, each with to businesses to improve retail commercial store- their own distinct uses and design standards. The fronts throughout the city. plan also encourages the extension of the RiverWalk along the Milwaukee River. The planning process for Downtown Development: DCD will continue to the draft redevelopment plan emerged from a broad pursue retail, office, and entertainment developments consensus of downtown stakeholders, business own- consistent with the objectives of the Downtown Plan. ers, neighborhood organizations, and city and county Major initiatives will include the redevelopment of officials. the former Park East Freeway Corridor, also the former Pabst Brewery complex is proposed as an enter- RiverWalk Extension: The city’s RiverWalk is spur- tainment center known as Pabst City. DCD will also ring economic development and improving access to continue to work to develop the city owned property the Milwaukee River. Since the project’s inception in located at North Fourth Street and West Wisconsin 1994, the property values in the downtown Milwau- Avenue. Focus will be in facilitating high quality kee River BID area have increased by nearly $182 mixed use developments throughout downtown million, an increase of 54%. Much of this is attribut- with a special emphasis on preserving the built envi- able to new residential development directly on the ronment. river and new commercial development in the area. In 2003, work was completed on a major portion of Business Improvement Districts: Business Im- the Historic Third Ward RiverWalk between Cly- provement Districts (BIDs) are special assessment bourn Street and the Broadway Bridge. districts created at the petition of local commercial property owners. BID initiatives tend to grow out of Market Milwaukee: A main focus of DCD’s Eco- local business organizations that have identified nomic Development Division is the retention and needs for creating a positive environment for devel- expansion of Milwaukee businesses. The products opment. DCD considers creating business associa- and services developed for that purpose (MEDC tions, BIDs, and other groups interested in economic loans, bond issues, site searches, etc.) are marketed to development vital in cultivating the partnerships the Milwaukee area business community. To expand necessary to sell Milwaukee as a marketplace. DCD’s business recruitment reach even further, the division participated in the Spirit of Milwaukee For 2004, there are 24 active BIDs in Milwaukee, each venture that developed a unified brand image and governed by a local board. Collectively, these BIDs message for the Milwaukee area.

2004 PLAN AND BUDGET SUMMARY 57 DEPARTMENT OF CITY DEVELOPMENT

Menomonee River Valley: In 2003, the Redevelop- Brownfield Redevelopment: With years of experi- ment Authority of the City of Milwaukee completed ence in brownfield redevelopment, the city has now condemnation proceedings against CMC Heartland participated in over 66 brownfields projects. On av- Partners and purchased 134 acres for $3.5 million. erage, every dollar that the city has contributed to Completion of that property purchase will allow the testing or cleanup has resulted in $56 of redevelop- city to proceed with massive site preparation work ment activity. In 2002, additional funding of more throughout 2004. This will include demolition of than $2.1 million was obtained from the U.S. Envi- thousands of square feet of relic building foundations ronmental Protection Agency, Wisconsin Department and more than six miles of derelict brick sewers, ex- of Natural Resources, and Wisconsin Department of tensive environmental cleanup, filling, and mass Commerce to conduct site testing and remediation. grading. Canal Street will be built in time to serve as In 2002, $250,000 of CDBG resources was used in a mitigation route beginning in 2005 for the combination with MEDC, city, and grant funds to Marquette Interchange reconstruction. Clean and assist with this work. CDBG funding was used for 23 buildable industrial sites will be for sale to private properties, which assisted in funding the removal of end users beginning in 2005. 18 underground storage tanks, the demolition of 2 buildings, and provided testing and cleanup re- Real Estate Services: The Department of City Devel- sources that led to committed redevelopment of ap- opment is responsible for the management and dis- proximately $7 million. DCD will continue to ac- position of real estate acquired by the City of Mil- tively seek grant funding and develop staff capacity waukee. Land use planning and urban design prin- for brownfields redevelopment in 2004. ciples that ensure orderly platting and growth and sustainable human scale development guide these Program Result Measures: The department has de- activities. veloped management indicators related to the retention and creation of jobs and increase in the tax base. In 2002, DCD closed 400 sales that generated income These measures include the following: in excess of $4.4 million. The amount of private investment in those residential and commercial sales • Dollars of private investment in job-creating was approximately $51 million. projects assisted by the City of Milwaukee; • Dollars of private investment in neighborhood- Blight elimination and land acquisition activities based businesses; have increased over recent years and seem to be in • Dollars of private investment for every dollar of direct correlation to improved local economic condi- public investment; and tions. In 2000, 15 acquisition projects were com- • Number of businesses certified in development pleted. In 2002, DCD staff managed 70 cases that will zones. facilitate industrial, residential, commercial, and institutional investments in many neighborhoods. The These measures will be enhanced or modified as Redevelopment Authority, as part of larger neigh- needed. borhood development projects, carries out these activities.

OBJECTIVE 2 Outcome Indicators and Funding

Support investment in new, diverse housing 2002 2003 2004 choices and operate federally funded, low Experience Budget Projection income programs as measured by creating Number of new housing 714 514 500 500 new housing units in 2004. units. Number of units 542 464 446 rehabilitated. OUTCOME HISTORY Funding by Source: Capital Budget $199,719 $200,000 $200,000 DCD supports the development of both mar- Grant and Reimbursable 8,257,285 9,842,967 7,450,000 ket rate and affordable housing in the city by Total: $8,457,004 $10,042,967 $7,650,000

58 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF CITY DEVELOPMENT

providing assistance to potential housing de- Figure 3 velopers. Specific services include assem- bling, preparing, and marketing property for residential development and facilitating the Number of New Housing Units Completed development process. 800

700 Milwaukee continued to experience large gains in the number of new housing units in 600

2002, with 714 units completed (see Figure 3). 500 These figures include NIDC Community Homes Program activities. A significant 400 number of conversions of vacant and un- 300 derutilized buildings added to the range of housing options. Demand is strong through- 200 out the city and assessed values and levels of 100 owner occupancy are increasing. 0 1995 1996 1997 1998 1999 2000 2001 2002 New units are being developed across a range of price levels and represent a mix of both new construction and conversion, and reno- cant new development projects in the area. These vation of former commercial, manufacturing, and projects will bring 514 new housing units to the warehouse properties. The success of recent projects neighborhood and more than $97 million in new in- continues to fuel strong interest in housing in the city vestment. from both developers and residents, many of whom are moving in from residences outside the city. Neighborhood Development: In 2004, construction will continue on several new neighborhood residen- DCD is involved in providing support and advice for tial projects representing more than $70 million in neighborhood based, single family housing devel- new development. Many involve the restoration of opments. DCD also collaborates with the Depart- vacant properties and revitalization of under utilized ment of Neighborhood Services to promote new public lands. The second phase of Cherokee Point, a residential infill development in neighborhoods. In high quality, traditional single family development 2004, DCD will dedicate a total of $7.7 million in being built on long vacant, decommissioned freeway capital and grant and aid funds toward this objective. lands, will be underway in 2004. When completed, the development will contain 77 owner occupied ACTIVITIES homes, 6 town homes, and 40 condominiums with a value of more than $25 million. • Support private housing development • Promote opportunities for new housing devel- DCD created a TID to support single family infill de- opment velopment on vacant city owned lots and the reha- • Facilitate the regulatory and approval process for bilitation of existing properties in the Lindsay residential developers Heights neighborhood, between Walnut and Locust th th • Assemble, prepare, and market sites suitable for Streets and 12 to 20 Streets. This unique initiative, new housing development which involves neighborhood residents, WHEDA, the local financial community, and non-profit organi- • Analyze housing markets zations is expected to result in more than $8 million PROGRAM CHANGES of residential investment in the neighborhood. In 2004, a high quality new subdivision will be under- Beer Line “B” Housing: In 2004, DCD will continue way at 14th and Lloyd Streets that will further sup- implementation of the master plan for development port infill development efforts in the neighborhood of this 44 acre project area along the Milwaukee River and add an estimated 40 new single family homes near the Brewers Hill neighborhood. Construction with a value of more than $6 million. will continue and/or be completed on eight signifi-

2004 PLAN AND BUDGET SUMMARY 59 DEPARTMENT OF CITY DEVELOPMENT

Downtown and Near Downtown Neighborhoods: contains 207 apartments, ground floor retail space, Milwaukee’s Downtown Plan calls for the addition of and represents more than $30 million in new invest- a variety of housing options in the downtown neigh- ment. Immediately adjacent, at Milwaukee and borhood. Between 1999 and 2002, almost 1,200 new Menomonee Streets, a combination of 140 apartments housing units were either completed or under con- and condominium units, along with retail space, is struction in the downtown area. With continuing being developed on vacant land. This project has an strong interest in downtown living, a number of estimated value of more than $20 million. projects will be under development in 2004, ranging from loft conversions, new town homes, and high Along Wisconsin Avenue, two prominent buildings rise buildings. are being converted to create additional residential rental opportunities. The Boston Lofts, located above The construction of Cathedral Place, at the corner of Boston Store, will contain 74 units with a value of Jefferson and East Wells Street, includes 30 new con- more than $8 million. At the historic Majestic Build- dominiums with a value of over $8 million. Across ing at Second and Wisconsin Avenue, affordable from Milwaukee’s lakefront, two luxury high rise rental opportunities will be created when the build- condominium developments will be under construc- ing is converted into 113 apartments, representing tion in 2004. Kilbourn Tower and University Club $12 million in new investment. Tower will contain a combined 125 condominium units and will add over $120 million to the city’s tax The residential market is also active just south of the base. Third Ward in the nearby Fifth Ward/Walker’s Point neighborhood. Water Street Lofts a $16 million, 80 In the Third Ward, the second and third phases of the unit condominium project and The Waterfront, a $20 Jefferson Block Apartments will be completed in 2004 million, 64 unit condominium development, both on former Redevelopment Authority owned land at located on South Water Street, will be completed in Jefferson and Menomonee Streets. The project 2004.

OBJECTIVE 3 Outcome Indicators and Funding Use planning and permitting as a tool to guide and support public and private i n- 2002 2003 2004 vestments as measured by 95% of construc- Experience Budget Projection tion plans completed in 15 days or less in Percent of construction 73.0% 95.0% 95.0% plans completed in 15 2004. days or less.

OUTCOME HISTORY Funding by Source: Operating Funds $2,362,954 $2,573,974 $2,422,293 Overall, a trend of increasing property values Grant and Reimbursable 336,185 485,800 485,800 is continuing citywide. Sustainability of this Capital Budget 285,878 150,000 150,000 trend over the long term requires that both Total: $2,985,017 $3,209,774 $3,058,093 public and private investments not only respect the context of the neighborhoods in which they are located but also add value. ket realities to which the development community must react. In 2004, the department will allocate a City planning and permitting activities provide the total of $3.1 million, including $2.4 million in oper- guidance required for value adding development. ating funds, toward this objective. Guidance comes in the form of the zoning ordinance, land use plans, urban design standards, the historic ACTIVITIES preservation ordinance, and building codes. • Land use planning Administration of these regulations by staff requires • Create land use plans sensitivity to both the long range goal of appropriate • Provide planning reviews physical development and the more immediate mar-

60 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF CITY DEVELOPMENT

• Create and administer urban design stan- of a twice-a-year newsletter for owners of historic dards properties. • Development and Permit Center Development Center: In 2003, the Development • Review project plans Center expanded its use of the Project Tracking Sys- • Issue permits tem (PTS) to departments outside of DCD that are involved in development plan reviews. The database PROGRAM CHANGES consolidates information about reviews and approvals by a variety of city staff into a single electronic Position Changes: For 2004, the Community Plan- record. PTS also facilitates the issuance of permits. ning and Development Services Decision Unit has made changes in its positions and funding. Vacant An online permit system developed with a $164,000 positions of Associate Planner, Office Assistant III, Technology Improvement Grant from the Depart- and Office Assistant II are eliminated, creating oper- ment of Administration will allow issuance of certain ating salary savings of $52,428. Various operating high volume permit types in 2004. The center has and non-operating funding changes are made for the significantly expanded its presence on the Internet positions of Planning Director, Graduate Intern, Of- and will continue to make permit forms and cus- fice Assistant III, and Associate Planner. tomer information available to the public through its web site. The center has also moved to electronic Neighborhood Planning: The neighborhood plan- property record retention; records such as building ning process is a collaborative effort between the city permits are now widely available to city staff via the and area stakeholders, such as community-based or- Intranet. ganizations, business groups, churches, non-profits, and other private sector agencies. Neighborhood Program Result Measures: A key component in selection is based upon the urgency of redevelop- completing any development project is the receipt of ment issues facing the area and its partners. In 2002 the appropriate permits. The city can affect this and 2003, the Fond du Lac Neighborhood Plan, the phase through the use of an efficient permit center. Design Guidelines for Westown, the UWM Neigh- Management will use indicators that include the fol- borhood Study, and the Park East Redevelopment lowing to monitor the permitting function: Plan was completed. In 2004, work will continue on the Historic Third Ward and the Menomonee Valley East End Redevelopment Plans. • Number of development plans approved; • Average length of time to approve 80% of the Historic Preservation: In 2004, staff will work to redevelopment plans; vise Milwaukee’s historic preservation ordinance to • Number of permits issued; simplify and clarify procedures. Staff will work to • Average waiting time for walk-in customers; make local preservation activities more visible • Number of certificates of appropriateness; and through media such as the Internet and publication • Average length of time to issue certificates of appropriateness.

OBJECTIVE 4 Outcome Indicators and Funding Operate federally funded and low income 2002 2003 2004 housing programs. Experience Budget Projection Housing Authority rating. 94 N/A 95 OUTCOME HISTORY Funding by Source: The Housing Authority of the City of Mil- Operating Funds $61,120 $0 $0 waukee (HACM) was chartered in 1944 and is Grant and Reimbursable 72,758,299 76,485,080 68,342,170 responsible for the construction, management, Total: $72,819,419 $76,485,080 $68,342,170 and provision of safe, affordable, and quality

2004 PLAN AND BUDGET SUMMARY 61 DEPARTMENT OF CITY DEVELOPMENT housing with services that enhance residents’ self- In 2002, the Housing Authority’s Strategic Alliance of sufficiency. Non-city funding of $68.3 million sup- Workforce Development, a collaboration of the ports this objective in 2004. HACM receives the ma- Housing Authority with employers in high growth jority of their funding from the U.S. Department of industries, resulted in 13 residents being hired at Housing and Urban Development. family supporting wages.

ACTIVITIES The Hillside Family Resource Center continues to play a significant role in sustaining self-sufficiency of • Lease, maintain, and improve public housing public housing residents. In 2002, over 35,000 visits units were made to the Resource Center. The Resource • Issue and renew rent assistance certificates and Center also functions as an informational center on vouchers the Earned Income Tax Credit Program. • Inspect privately owned housing units for rent assistance contracts The Housing Authority is also involved in several • Increase the self-sufficiency of residents through educational initiatives that are designed to help every partnerships with other organizations young person achieve academic excellence. In 2002, 35 HACM Scholarships were awarded to residents Position Changes: DCD’s Public Housing Programs pursuing post-secondary education. Decision Unit consists of Housing Authority and Neighborhood Improvement Development Corpora- Homeownership: Since 1994, the Housing Authority tion (NIDC) staffs. In 2004, both HACM and NIDC has helped 200 of its residents purchase their own reduced staffing in response to reductions in federal homes. Ninety-two Housing Authority residents and block grant funding For additional details, purchased their home as part of HACM’s 5(h) Pro- please refer to the “Detailed Listing of Positions and gram, which is a HUD approved program for selling Full Time Equivalents’ Changes”. Scattered Sites, adding more than $4 million to the city’s tax base. HACM staff helped another 94 resi- The Housing Authority has developed a number of dents purchase homes in the private market. HACM award winning programs that focus on the develop- has taken applications from 953 residents interested ment of healthy communities, which provide safe in its Homeownership Program. environments for families and children. It measures the impact of these programs by looking at changes Public Safety: HACM has a high quality, in-house in property values, educational levels, and income. public safety program. December of 2002 saw the The 2004 budget reflects four major initiatives: end to the HUD grant funded Drug Elimination Pro- gram, which funded HACM’s Public Safety Program. HACM has addressed the loss of $1.5 million to pay • Economic self-sufficiency initiatives; for public safety services by reducing staffing, over- • Homeownership; heads, and creating efficiencies in other areas. A • Public safety; Homeland Security Grant to HACM in the amount of • Physical improvements to ensure the long term $225,000 partially offset the loss of HUD funds. viability of city housing. Physical Improvements: The Housing Authority has Economic Self-Sufficiency Initiatives: Long term received four Hope VI Grants from HUD to revitalize economic self-sufficiency will only be achieved Hillside Terrace, Parklawn, the Lapham Park Family through employment. The Housing Authority has a Development (funding for the Lapham Park revitali- number of initiatives to help residents obtain and zation includes $9.6 million of equity generated from retain family supporting jobs. The Housing Author- low income tax credits), and Highland Park. The re- ity has two resident employment coordinators who vitalization of these family developments included a work very closely with the W-2 coordinating agen- reduction in both the density and the physical and cies to ensure that residents do not “fall through the social isolation of these communities by reconnecting cracks”. them to the surrounding neighborhoods.

62 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF CITY DEVELOPMENT

HACM is planning to revitalize Highland Park measures include: occupancy and lease-up; revitali- within the next 18 months. All revitalization is being zation of distressed public housing; homeownership; performed without any local tax dollars. crime; minority, women, and disadvantaged business participation; increased wage income; and partner- Program Result Measures: The Housing Authority ships. will refine program measures as needed. The current

SPECIAL PURPOSE ACCOUNTS

In 2004, DCD will oversee the administration of and the Milwaukee Arts Board ($192,000). The Arts $491,000 in Special Purpose Accounts (SPA). This Board funding is reduced by $25,000, which is con- includes the $169,000 city contribution for Business sistent with 2000 funding. The reduction will elimi- Improvement Districts. DCD also administers ac- nate funding for the additional consultant that was counts for the Fourth of July Committee ($130,000) added in 2001.

CAPITAL IMPROVEMENTS

The 2004 budget includes $23,950,000 in Table 1 capital funding. Projects include: Department of City Development Summary of Capital Funds Advance Planning Fund: The 2004 budget includes $150,000 for DCD to conduct pre- 2003 2004 Proposed liminary planning studies and research into Account Description Capital Budget Capital Budget land use, marketing, development and rede- Advance Planning Fund $150,000 $150,000 velopment proposals, and other issues. Neighborhood Commercial Revitalization 500,000 500,000 Business Improvement District 500,000 500,000 Neighborhood Commercial Revitalization: Tax Incremental Districts 14,000,000 19,000,000 This fund contains $500,000 for street im- TID Developer Revenues 0 1,600,000 provements. The city forms public/private Development Fund 1,700,000 2,200,000 partnerships with neighborhood merchants Total City Funding: $16,850,000 $23,950,000 for the purpose of upgrading the appearance of commercial streets. sustain TID expenditure needs. This is $5,000,000 more than 2003 due to the size and rapid advance- Business Improvement Districts: The 2004 budget ment of several large projects like the Park East and provides $500,000 in funding that allows the city to Menomonee Valley. For 2004, the capital budget also continue this program, allowing a BID to borrow the includes $1.6 million for developer revenues. cost of the project through the city and repay the city over time, both principal and interest. Development Fund: The 2004 budget includes funding of $2,200,000 for the Development Fund. Tax Incremental Financing: The 2004 budget pro- The fund is utilized when a project is too small to vides for $19,000,000 in capital funding based on an warrant or is not appropriate to create a TID. This is annual forecast of borrowing authority required to an increase of $500,000 from 2003.

2004 PLAN AND BUDGET SUMMARY 63 DEPARTMENT OF CITY DEVELOPMENT

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 57.70 55.91 46.75 -9.16 FTEs - Other 152.77 243.59 188.25 -55.34 Total Positions Authorized 271 325 252 -73 DLH - Operations and Maintenance 103,855 100,638 84,150 -16,488 DLH - Other Funds 274,991 440,262 338,850 -101,412

EXPENDITURES Salaries and Wages $2,911,267 $2,635,366 $2,175,478 $-459,888 Fringe Benefits 1,052,414 975,085 804,927 -170,158 Operating Expenditures 504,294 577,475 460,974 -116,501 Equipment 0 0 0 0 Special Funds 145,326 102,900 93,248 -9,652 TOTAL $4,613,301 $4,290,826 $3,534,627 $-756,199

REVENUES Charges for Services $420,284 $447,200 $383,700 $-63,500 Licenses and Permits 806,331 592,000 641,500 49,500 Miscellaneous 624,885 300,000 415,000 115,000 TOTAL $1,851,500 $1,339,200 $1,440,200 $101,000

CAPITAL PROJECTS - Includes $23,950,000 for the following projects: a. Advance Planning Fund - $150,000 b. Neighborhood Commercial Revitalization - $500,000 c. Business Improvement Districts - $500,000 d. Tax Incremental Districts - $19,000,000 e. TID Developer Revenues - $1,600,000 f. Development Fund - $2,200,000

ORGANIZATION CHART

Mayor

Office of the Commissioner

HACM RACM

Administration Housing Economic Development Planning

64 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF CITY DEVELOPMENT

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason General Management and Policy Development Decision Unit -1 -1.00 $-29,601 Administrative Assistant I

-1 -0.44 -0.56 $-37,203 $-47,350 Urban Development Manager

-1 -1.00 $-30,890 Personnel Payroll Assistant II Positions eliminated. -2 -2.00 $-49,856 Office Assistant II

-1 Real Estate Specialist (Aux.)

-1 Real Estate Analyst Senior (Aux.)

-1 -1.00 $-53,158 Economic Development Policy Coordinator

-1 -0.49 -0.51 $-36,465 $-37,954 Redevelopment and Special Projects Manager

-1 -1.00 $-65,496 Small Business Development Officer

-1 -1.00 $-50,756 Real Estate Analyst Senior Positions eliminated (to direct -1 -1.00 $-39,259 Relocation Specialist III HACM or RACM).

-1 -1.00 $-41,182 Program Monitor

-1 -1.00 $-38,634 Management Accountant Sr

-1 -1.00 $-38,634 Accounting Manager City Development

-1 -1.00 $-31,240 Office Assistant III

-0.52 0.52 $-42,246 $42,246 Marketing Development Services Manager

-0.62 0.62 $-26,662 $26,662 Marketing Program Coordinator

-0.50 0.50 $-8,788 $8,788 College Intern

-0.75 0.75 $-60,280 $60,280 Neighborhood Development Manager Funding changes to better represent positions' duties and -0.70 0.70 $-35,259 $35,259 Economic Development Specialist responsibilities.

-1.00 1.00 $-38,516 $38,516 Geographic Information Technician II

-0.38 0.38 $-32,130 $32,130 Budget and Management Reporting Manager

-0.51 0.51 $-25,160 $25,160 DCD Personnel Officer

0.19 -0.19 Miscellaneous Adjustment

2004 PLAN AND BUDGET SUMMARY 65 DEPARTMENT OF CITY DEVELOPMENT

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

Public Housing Programs Decision Unit -1 -1.00 $-43,889 Administrative Assistant I

-1 -1.00 $-41,182 Housing Manager III

-1 -1.00 $-54,086 Housing Manager II

-1 -1.00 $-29,787 Custodial Worker II/City Laborer

-1 -1.00 $-30,890 Office Assistant IV

-2 -2.00 $-59,574 Custodial Worker II/City Laborer

1 1.00 $33,183 Building Maintenance Mechanic II

-2 -2.00 $-61,780 Office Assistant IV

-1 -1.00 $-28,348 Office Assistant III

-1 -1.00 $-46,785 Tenant Selection and Certification Manager

-2 -2.00 $-56,696 Office Assistant III

-1 -1.00 $-75,491 Section 8 Program Manager Position changes due to reduction -1 -1.00 $-47,549 Rent Assistance Inspector in grant funding.

-1 -1.00 $-46,785 Housing Production Manager

-2 -1.00 $-34,008 Management Accountant II (0.5 FTE)

-1 -1.00 $-24,928 Office Assistant II

-7 -7.00 $-288,274 Housing Rehabilitation Specialist Sr

-1 -1.00 $-36,241 Housing Rehabilitation Specialist

-1 -1.00 $-34,007 Administrative Specialist

-2 -2.00 $-49,856 Office Assistant II

-1 -1.00 $-36,241 Housing Program Specialist

-1 -1.00 $-34,007 Administrative Specialist

-1 -1.00 $-34,007 Loan Specialist

-3 -3.00 $-88,056 Office Assistant III

-1 -1.00 $-41,182 Housing Rehabilitation Specialist Sr

66 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF CITY DEVELOPMENT

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-2 -2.00 $-77,268 Administrative Specialist Sr

-1 -1.00 $-90,328 Housing and Neighborhood Development Manager

-1 -1.00 $-65,571 Fiscal Officer Position changes due to reduction -1 -1.00 $-54,086 Housing Program Supervisor in grant funding. -1 -1.00 $-61,451 Community Housing and Preservation Manager

-3 -3.00 $-150,218 Housing Rehabilitation Specialist Sr

-1 -1.00 $-54,086 Administrative Specialist Sr

-1 -1.00 $-43,889 Code Enforcement Assistant Supervisor

-1 -1.00 $-41,182 Housing Rehabilitation Coordinator Transferred to Department of -2 -2.00 $-95,030 Housing Rehabilitation Inspector Neighborhood Services.

-1 -1.00 $-40,910 Administrative Specialist Sr

-1 -1.00 $-28,348 Office Assistant III

-1 -1.00 $-46,785 Financial Service and Marketing Position eliminated (to direct Manager RACM).

5.00 Miscellaneous Adjustment Various HACM positions.

Community Planning and Development Services Decision Unit -2 -0.54 -1.46 $-21,068 $-56,960 Associate Planner

-1 -1.00 $-31,360 Office Assistant III Vacant positions eliminated.

-1 -0.50 $-12,464 Office Assistant II (0.5 FTE)

-0.20 0.20 $-20,052 $20,052 Planning Director

Graduate Intern Funding changes to better represent positions' duties and -0.50 0.50 $-15,680 $15,680 Office Assistant III responsibilities.

-0.20 0.20 Associate Planner -73 -9.16 -55.34 $-484,027 $-2,405,121 TOTAL

2004 PLAN AND BUDGET SUMMARY 67 DEPARTMENT OF CITY DEVELOPMENT

HOUSING AUTHORITY OF THE CITY OF MILWAUKEE (HACM)

NOTE: The budget of this agency is not under control of the Common Council. This information is being provided to portray more fully the activities administered by the Department of City Development.

The Housing Authority of the City of Milwau- kee (HACM) is responsible for construction, Table 1 management, and provision of safe, affordable, HOUSING AUTHORITY PROGRAMS AND FUNDING and quality housing with services that enhance 2003 2004 ESTIMATED residents’ self-sufficiency. HACM is adminis- PUBLIC HOUSING PROGRAM FUNDING FUNDING LEVEL tered by a seven member board of commission- 1. LOW INCOME HOUSING ers. Members are appointed for staggered terms Rental Income and Reserves $12,709,970 $13,091,270 by the Mayor and confirmed by the Common Federal Operating Subsidy 8,621,940 7,759,750 Subtotal: Council. $21,331,910 $20,851,020 2. URBAN REVITALIZATION (HOPE VI) Lapham $2,000,000 $0 ACTIVITIES Parklawn 2,000,000 0 Highland Park 10,000,000 9,000,000 • Low rent public housing management 3. RENT ASSISTANCE PROGRAM $23,579,240 $24,286,610 • Rent Assistance Program (Section 8) 4. VETERAN'S HOUSING Operating and Maintenance $4,908,210 $5,104,540 • Housing development and rehabilitation Captial Improvements $2,000,000 0

• Veterans’ housing 5. OTHER $2,180,000 $2,200,000 • Homeownership and self-sufficiency serv- Total: $67,999,360 $61,442,170 ices

Partnerships: The Housing Authority works in part-

Table 1 provides an illustration of funding levels of nership with community based organizations to various programs operated by the Housing Author- maximize public and private sector funding. S.E.T. ity. Ministry provides case management services for elderly and disabled persons in the highrise develop- Budget: HACM’s principal funding source is the ments. Through a HUD Community Outreach Part- federal government through various programs ad- nership Center Grant, the Medical College of Wis- ministered by the Department of Housing and Urban consin is providing programming, including a Health Development (HUD). HUD provides an operating Advocacy Program. This program trains residents to subsidy to make up the difference between the cost of intervene in appropriate ways in health care issues managing public housing and the revenues received affecting their neighbors at all of HACM’s low- from 30% of resident’s income. The Housing income housing developments. Each of the four Authority anticipates additional reductions in future family developments also has at least one on site so- federal funding as Congress and the Administration cial service provider. The Housing Authority also move to adjust spending to meet federal budget caps. operates the Family Resource Center at Hillside Ter- The Housing Authority is considering additional op- race, which house services provided by Day Care portunities for funding available through the Quality Services for Children, Inc., and MATC. The Housing Housing and Responsibility Act of 1998 and the Wis- Authority continues to work with Milwaukee consin State Statutes. County, the Private Industry Council, and W-2 coor-

dinating agencies to help public housing residents

Homeownership: HACM has an extremely success- successfully transition from welfare to work. ful homeownership program which has helped more than 200 residents purchase homes and added more Resident Safety: In 2002, HACM’s Public Safety than $4 million to Milwaukee’s tax base during the Section responded to 7,514 calls for service. By re- past eight years. Forty new homes will be available sponding to these calls, HACM saved the Milwaukee for sale to public housing families this year, and 24 Police Department more than $255,000 and the Mil- new market rates homes will be available for sale in waukee Fire Department more than $1,500,000. Pub- 2004 as part of the Highland Park revitalization. lic Safety Staff also issued parking tickets that totaled

68 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF CITY DEVELOPMENT more than $86,000 in potential revenue for the city. received tax credits for the revitalization of Lapham In 2002, HACM received a Homeland Security Grant Park and recently received a $19 million Hope VI which is being used to upgrade the response skills of grant from HUD for the revitalization of the High- Public Safety staff and to recruit resident volunteers land Park Housing Development. Through the to assist with Homeland Security activities, including Lapham Park Venture, a public private partnership being trained for CPR and First Aid Fast. involving the Milwaukee County Department on Aging, SET Ministry, Community Care Organization, Revitalization Funds: HACM revitalized Hillside and St. Mary’s Hospital, 95% of Lapham residents Terrace, Parklawn, and Lapham Park with over $90 age in place while saving over $1 million in Medicaid million of Hope VI funding from HUD. HACM also funding per year.

2004 PLAN AND BUDGET SUMMARY 69 DEPARTMENT OF CITY DEVELOPMENT

REDEVELOPMENT AUTHORITY OF THE CITY OF MILWAUKEE (RACM)

NOTE: The budget of this agency is not under control of the Common Council. This information is being provided to give a complete picture of the activities administered by the Department of City Development.

The Redevelopment Authority is an independent with an equal corresponding liability (outstanding corporation created by State Statute in 1958 and de- loans, bonds, and other obligations). This includes rives its powers solely from state law. The Redevel- an inventory of real estate being held for develop- opment Authority’s discreet relationship with the ment with a gross value of approximately $8 million. City of Milwaukee is more particularly described in the 1998 audited financial statements of the Author- The Redevelopment Authority is expert in the field of ity, which are appended hereto. economic development. Over the years, it has issued bonds in excess of $500 million to leverage and sup- A board whose members are appointed by the Mayor port private investments. It has participated directly and confirmed by the Common Council oversees the in the planning, design and development of retail Redevelopment Authority. The Redevelopment and cultural centers, business parks, residential sub- Authority relies upon the Department of City Devel- divisions and stand-alone commercial ventures. opment for the professional, technical, and administrative support necessary to carry out its mission. The Redevelopment Authority has a reputation for This is accomplished through an annual cooperation promoting and attracting development in both stable agreement with the City of Milwaukee, with operat- and marginal markets, and for creating model solu- ing funds provided through the city’s CDBG Pro- tions to complex real estate development and envi- gram for: ronmental challenges throughout Milwaukee’s neighborhoods. • Management of financial affairs; • Land use planning and urban design guidance; The following are some representative examples of the types of projects and activities administered by • Real estate acquisition and disposition; the Redevelopment Authority in cooperation with • Relocation assistance for displaced families and the Department of City Development: businesses; • Property management and environmental inves- • Assemblage and sale of land, Tax Increment Dis- tigation; and trict (TID) loan administration and the issuance • Housing and economic development project of bonds for the construction of offices and insti- management. tutional facilities, affordable rental and owner occupied housing, and retail projects. The mission of the Redevelopment Authority is to • Publication of RFPs for the purchase and renova- eliminate blighting conditions that inhibit neighbor- tion of historic structures in such neighborhoods hood reinvestment; foster and promote business ex- as King Drive, Brewers Hill, Walker’s Point, Con- pansion and job creation; and facilitate new business cordia, and Cold Spring Park. and housing development. Toward that end, the Re- development Authority: • Capital investment and continued participation in the Housing Partnership Corporation revolv- ing loan fund for below market rate loans to non- • Prepares and implements comprehensive rede- profit organizations for affordable housing pro- velopment plans; duction. • Assembles real estate for redevelopment; • Preparation of comprehensive plans to guide fu- • Is empowered to borrow money, issue bonds, ture development in the Menomonee River Val- and make loans; and ley, Midtown, and Beerline areas. • Can condemn property (eminent domain) in • Miscellaneous bond transactions for business furtherance of redevelopment objectives. recruitment, retention and expansion in locations throughout the city for real estate purchase, facil- The Redevelopment Authority had assets totaling ity construction and equipment. more than $60 million as of December 31, 2002 but

70 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF CITY DEVELOPMENT

MILWAUKEE ECONOMIC DEVELOPMENT CORPORATION (MEDC)

NOTE: The budget of this agency is not under control of the Common Council. This information is being provided to give a complete picture of the activities administered by the Department of City Development.

The Milwaukee Economic Development Corporation fectively to assist fixed asset projects ranging in size (MEDC) is a non-stock, non-profit organization from $300,000 up to $3 million. formed in 1971 to promote economic development for the benefit of the citizens of the City of Milwau- Second Mortgage Program: This program is used kee. The principal objective of the corporation is to primarily to assist in providing second mortgage fi- benefit the community by fostering the increase of nancing for small businesses expanding or locating in employment opportunities and expansion of business the City of Milwaukee. Funds for up to 40% (not to and industry within the metropolitan Milwaukee exceed $500,000) of the total cost of a fixed-asset proj- area. The corporation uses its own funds to finance ect are available. A 10% equity injection is required. projects to achieve that objective. The corporation is exempt from federal and state income taxes under a Land Development Program: MEDC uses some of provision of Section 501(c) (3) of the Internal Revenue its funds to acquire, improve, develop, and market Code. industrial sites to promote economic development. Revenues are derived from the sale, lease, or rental of A 18 member Board of Directors consisting of the land holdings from which the expenses of adminis- Mayor, the Comptroller, the President of the Com- tering the program and maintaining properties are mon Council, 2 council members, and 13 representa- paid. tives of the business community oversee MEDC’s activities. MEDC’s board has delegated authority for Target Loan Program: This program was designed policy actions to its Executive Committee that con- to aid start-up and existing businesses in obtaining sists of the Mayor, the Comptroller, the President of conventional bank funds or SBA guaranteed bank the Common Council, one council member, and six funds to undertake a business project. Low cost representatives of the business community. loans are made available for up to 40% of a project’s total cost (not to exceed $300,000). The program is Some services are provided to MEDC by the city available to all minority, women, and disadvantaged through under a service agreement that is reviewed business owners and all businesses located in the periodically. The MEDC reimburses the city for any Community Block Grant area. A 10% equity injection personnel and resources provided to the corporation is required. under this agreement. Total MEDC assets in 2003 were $53 million. Partnership Loan Program: The Partnership Loan Program is MEDC’s most flexible program. Under MEDC uses its resources, as well as those of the this program, the corporation will invest or lend in Small Business Administration, to make financing partnership with a venture capitalist and asset-based available to businesses promising to create job op- lender. portunities and new investment in Milwaukee. The programs available through MEDC include: Capital Access Program (CAP): MEDC began this program in 1992 to provide access to private capital SBA 504 Debenture Program: Through this pro- for small businesses. MEDC, the State of Wisconsin, gram, eligible businesses can receive second mort- and the City of Milwaukee fund the program. CAP gage funds for 25% to 45% (up to $1,300,000) of a is structured as a public/private loan loss reserve project’s total cost. This program has been used ef- program. Most loans range from $10,000 to $50,000.

2004 PLAN AND BUDGET SUMMARY 71 DEPARTMENT OF CITY DEVELOPMENT

NEIGHBORHOOD IMPROVEMENT DEVELOPMENT CORPORATION (NIDC)

NOTE: The budget of this agency is not under control of the Common Council. NIDC is an independent corporation that works in cooperation with the Department of City Development.

The Neighborhood Improvement Development Cor- • Participating in an action to improve the fiscal poration (NIDC) is a non-profit corporation estab- soundness and physical conditions at the Wood- lished by the city in 1973 for the purpose of per- lands Condominium (also known as North forming activities that assist and encourage rein- Meadow Condominium), a 500 unit complex on vestment in residential property as part of an overall the city’s northwest side. As a result, the North neighborhood economic stabilization strategy. NIDC Meadow Board of Directors has taken steps to programs encourage investments by private lending improve maintenance of the complex, to central- institutions and property owners by providing finan- ize the tenant screening process, to increase cial assistance in the form of grants, rehabilitation owner occupancy rates in the complex, and to loans, and interest subsidy payments on conven- improve the collection of condominium fees to tional loans. NIDC also acts as a developer to stabi- make the complex financially solvent. NIDC lize and encourage neighborhood housing markets. continues to work with the lending industry to In addition, the NIDC provides technical assistance make it possible for prospective owners to obtain and serves as a liaison between community-based conventional mortgages. organizations, city departments, area businesses, and • Partnering with Wisconsin Housing and Eco- associations. NIDC is headed by a nine-member nomic Development Authority (WHEDA), DCD, board of directors, which includes at least four city lenders, realists, and counseling agencies encour- residents. Board members serve for a period of three ages new homeownership on vacant parcels of years, with one-third of the terms expiring each year. land owned by the City of Milwaukee. The Lind- Federal funding supports many NIDC programs (re- say Heights area, which neighbors CityHomes on ceived through the Community Development Block the east and bounded by West Walnut, North Grant (CDBG) Program). 20th Street, West Center Street, and North 12th Street, is an example of this partnership. In an ef- NIDC Transfer: Consistent with the city’s strategic fort to economically diversify the neighborhood, objective of utilizing a comprehensive approach to NIDC has participated in creating a TID, which the planning and redevelopment of neighborhoods, will provide a development contribution. As of NIDC was reassigned to the Department of City De- June 30, 2003 there were 21 new Lindsey Heights velopment in 2003. NIDC’s housing activities will be homes funded with both NIDC dollars and TID coordinated with DCD’s planning and neighborhood funds. To date, 68 lots have been sold and are economic development activities to efficiently lever- either built-out or under construction with an- age resources and add maximum value to city neigh- other 10 accepted offers in progress. In 2004, borhoods. NIDC will continue its collaborative efforts in this area as well as other areas of the city. Recent NIDC activities include: • Collaborating with the Merrill Park Neighbor- hood Association on the Historic Merrill Park • NIDC will continue to work within the housing Estates Project, which has resulted in the con- strategy guidelines to increase and target new struction of five new homes on North 29th Street housing production. NIDC maximizes and util- between Michigan and Clybourn. The model izes all available resources to revitalize and target home, which was built by NIDC to encourage in- neighborhoods in cooperation with city depart- fill new construction, has hosted many tours and ments and other neighborhood stakeholders. open houses. As of July 2003, five of the seven NIDC continues to work with all ten TIN pro- sites have been sold and either built-out or are gram areas. under construction. The remaining two sites continue to be marketed for affordable homeownership.

72 2004 PLAN AND BUDGET SUMMARY COMMON COUNCIL CITY CLERK

EXECUTIVE SUMMARY

MISSION: To establish city policy and law, oversee the administration of city government, adopt an annual budget, ensure the delivery of services to constituents, and provide public information about city government.

STRATEGIC Perform the legislative function by conducting Common Council and committee meetings, ISSUES: providing meeting and research support services, administering licensing functions, and administering the city’s cable television franchise.

Ensure the delivery of city services to constituents by responding to requests for service and overseeing the operation of city departments.

Deliver information about the operation of city government by providing access to and dis- seminating official documents and records of city government, conducting public relations activities, and television programming.

INITIATIVES Introduce wireless computing capabilities in meeting rooms. FOR 2004: Continue to cross train personnel to accommodate workload fluctuations and reduced staffing.

Improve public access to license information via the Internet.

Implement 24 hour business establishment licensing.

BACKGROUND

The Common Council City Clerk’s Office constitutes diverse range of support to council members, in- the legislative branch of city government. Following cluding staffing council committees, producing pub- the 2004 aldermanic election, the council will consist lic relations material, and operating the city’s cable of 15 members, representing separate districts, who television channel. The Legislative Reference Bureau are elected for four year terms. The City Clerk’s Of- staff author and analyze legislative initiatives; re- fice supports the activities of the council and general view and make recommendations on fiscal matters; operations of city government. It is comprised of the and maintain a library of books, reports, periodicals, Central Administration Division, the Council Serv- newspapers, and online databases. The License Di- ices Division, the Legislative Reference Bureau, and vision administers the liquor, cigarette, bartender, the License Division. home improvement, and public passenger vehicle licenses. The Common Council City Clerk’s 2004 Central Administration staff provides general ad- operating budget totals $7,688,938 including ministrative support functions for the department $417,471 in special purpose accounts and $58,588 in and assists council members in their work with con- grant funding. stituents. The Council Services Division provides a

OBJECTIVE 1

Perform the legislative, constituent service, and Council and City Clerk's Office effectively and ef- public information functions of the Common ficiently.

2004 PLAN AND BUDGET SUMMARY 73 COMMON COUNCIL CITY CLERK

OUTCOME HISTORY Outcome Indicators and Funding

The 2004 budget for the Common Council 2002 2003 2004 City Clerk’s Office totals $7,688,938, which Experience Budget Projection allows it to carry out the objectives of legisla- Funding by Source: tive activity, constituent services support, Operating Funds $7,684,106 $7,861,232 $7,212,879 and public information. Salaries and fringe Grant and Reimbursable 168,303 117,658 58,588 benefit costs represent 83.2% of allocated Capital Budget 61,058 0 0 funds. Special Purpose Accounts 409,502 447,158 417,471 Total: $8,322,969 $8,426,048 $7,688,938 ACTIVITIES

Common Council: Map 1 • Conduct regular and special council and committee meetings • Adopt resolutions, ordinances, and motions • Confirm appointments • Grant licenses • Adopt an annual city budget • Respond to numerous requests for service and information from individual constituents and neighborhood organizations • Ensure that city services are being adequately provided to districts

City Clerk’s Office: • Keep official records of all council business • Issue agendas, minutes, hearing notices, and other documents in support of council business • Produce and distribute the official copy of the city charter and code of ordinances to city departments and the public • Provide general research, fiscal research, budget analysis, and legislative drafting services to the council • Administer over 100 types of licenses which are granted by the council • Support council service delivery efforts by providing constituent support staff • Publicize Common Council business by official notices, cable television broadcast, press releases, and newsletters issued by individual council members PROGRAM CHANGES • Produce newsletters, press releases, and other Reduction in Aldermanic Districts: Following the city publications, including web pages related to general election in April 2004, the number of alder- city government functions manic districts will be reduced from 17 to 15 (see • Operate a reference library for use by all city Map 1). This implements the change adopted by the departments and the public Mayor and Common Council in File 021316. As a • Administer the city’s cable television agreement result of this change, the number of Alderman posi- • Operate the city cable television channel tions will be reduced by two. The number of Legis- lative Assistant positions will also be reduced by two effective at the beginning of the 2004 budget

74 2004 PLAN AND BUDGET SUMMARY COMMON COUNCIL CITY CLERK year. These reductions are estimated to save $3.1 staffing flexibility, enabling staff to be utilized for million from 2004 through 2012. different functions as needed.

Operating Expenditure Reductions: The “Other Community Services Positions: The 2004 budget Operating Services Account” is reduced by $97,074 eliminates the two Community Services positions, (19%) as a result of reduced mailing, printing, and the Community Services Coordinator and the Com- training activities. This also reflects eliminating the munity Services Specialist Senior. This results in monthly home phone reimbursement payment to salary savings of $111,744. While the 2003 budget Common Council members. assumed one of these positions would be funded through Community Development Block Grant re- Reduction in Special Funds: The 2004 budget reprogramming dollars, these positions do not qualify duces funding for several special funds within the for this grant funding. Other staff in the City Clerk’s City Clerk’s budget. The Aldermanic Travel Fund is Office, including Legislative Assistants, will assume reduced by $22,000 (56%); the Computer System responsibility for addressing issues previously ad- Upgrades Fund is reduced by $12,000 (15%), and the dressed by the Community Services positions. Sale of Code and Charter Fund is reduced by $5,000 (18%). 24 Hour Business Establishment Licensing: The Common Council passed legislation in October, 2003 Increase in Audit Fund Account: The Common (File 030511) that will require licensing of 24 hour Council City Clerk’s Office has expenditure author- business establishments. The 2004 budget creates an ity for a special purpose account that funds audits additional License Specialist position to support ad- completed by the city’s outside auditor. The Comp- ministration of the new licensing rules and regula- troller’s Office manages the audits but the audit con- tions. The additional position, with salary expenses tract is executed through the City Clerk’s Office. in 2004 of $26,094, will provide the License Division The 2004 budget increases funding for this account with adequate staffing for the administration and by $40,000 (23.5%). Part of this increase is the result issuance of the new license. of the expanded audit and accounting requirements under GASB 34. The current four year contract for Freeze in Common Council Salaries: The Common auditing services expires in 2003 and a new contract Council passed legislation in November, 2003 (File will be completed this year. 030516) that will freeze the salary of the Mayor and the members of the Common Council. During the Changes in Other Special Purpose Accounts: The first year (2004-2005) of the 2004-2008 term of office, City Clerk is responsible for several other special the Mayor and the Common Council members will purpose accounts. Changes in these accounts for be paid the same salary as paid in the prior years 2004 include eliminating funding for the Handgun (2003-2004) of the previous term. The change is ex- Violence Media Campaign account and reducing pected to save $24,233 in aldermanic salaries and funding for the Economic Development Committee $2,873 in mayoral salaries. Fund by $30,000. Other Position Changes: The 2004 budget includes Legislative Reference Bureau Cross Training: The reductions in several other positions. These reduc- 2003 budget created a new position title, Legislative tions include eliminating unfunded positions of Fiscal Analyst (Salary Grade 7), to combine the func- Administrative Assistant II, Production Assistant, tions of the Legislative Research Analyst Senior and and Graduate Intern. Additional position reductions the Fiscal Review Analyst Senior (both Salary Grade include eliminating a vacant Administrative Assis- 6) into a single position. The 2004 budget continues tant II position (savings of $34,183), eliminating two this staffing initiative by creating two more Legisla- College Intern positions (savings of $9,387), elimi- tive Fiscal Analyst positions and eliminating one nating one Librarian I position (savings of $36,742) Legislative Research Analyst Senior and two Fiscal and eliminating one Personnel Payroll Assistant I Review Analyst Senior positions. This change facili- (savings of $34,183). Other position changes include tates additional cross training of staff in the Legisla- funding the Staff Assistant to the Finance and Per- tive Reference Bureau so that staff can perform both sonnel Committee position for one-third of the year legislative research and fiscal review functions. This and reducing the salary of the Deputy City Clerk provides the bureau with more operational and position.

2004 PLAN AND BUDGET SUMMARY 75 COMMON COUNCIL CITY CLERK

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 99.12 99.19 95.07 -4.12 FTEs - Other 0.97 2.00 1.00 -1.00 Total Positions Authorized 109 114 102 -12 DLH - Operations and Maintenance 178,409 178,542 171,122 -7,420 DLH - Other Funds 1,750 3,600 1,800 -1,800

EXPENDITURES Salaries and Wages $4,761,020 $4,972,437 $4,624,205 $-348,232 Fringe Benefits 1,745,207 1,839,802 1,710,955 -128,847 Operating Expenditures 863,119 808,458 715,784 -92,674 Equipment 87,055 81,500 40,900 -40,600 Special Funds 227,705 159,035 121,035 -38,000 TOTAL $7,684,106 $7,861,232 $7,212,879 $-648,353

REVENUES Charges for Services $3,532,827 $3,014,400 $3,514,200 $499,800 Licenses and Permits 1,681,628 1,481,000 1,822,700 341,700 TOTAL $5,214,455 $4,495,400 $5,336,900 $841,500

CAPITAL PROJECTS - None

ORGANIZATION CHART

Common Council

City Clerk Deputy City Clerk

Central Legislative Administration Council Services License Division Reference Bureau Division Division

76 2004 PLAN AND BUDGET SUMMARY COMMON COUNCIL CITY CLERK

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1.42 $-66,998 Alderman Aldermanic districts reduced from 17 to 15. -2 -2.00 $-69,401 Legislative Assistant

-0.66 $-37,351 Staff Assistant Finance and Anticipated vacancy. Personnel Committee

-1 -1.00 $-34,183 Personnel Payroll Assistant I Eliminate anticipated vacant position.

-1 -1.00 $-34,183 Administrative Assistant II Eliminate vacant position.

-1 -1.00 $-54,086 Community Service Specialist Sr Elimination of grant funding and position.

-1 -1.00 $-57,658 Community Service Coordinator Elimination of positions. -2 -0.50 $-9,387 College Interns

-1 Administrative Assistant II Eliminate unfunded auxiliary position.

-1 Production Assistant Eliminate unfunded part time position. -1 Graduate Intern

1 0.81 $26,094 License Specialist Position will support 24 hour business establishment licensing.

-1 -1.00 $-36,742 Librarian I Reduce staffing in Library Section.

-1 -1.00 $-63,454 Legislative Research Analyst Sr Reorganization of Legislative -2 -1.00 $-41,884 Fiscal Review Analyst Sr Reference Bureau staff. 2 2.00 $112,142 Legislative Fiscal Analyst

3.65 Miscellaneous Adjustments -12 -4.12 -1.00 $-313,005 $-54,086 TOTAL

2004 PLAN AND BUDGET SUMMARY 77 COMPTROLLER

EXECUTIVE SUMMARY

MISSION: To fulfill the responsibilities of the independently elected Comptroller of the City of Milwau- kee.

STRATEGIC Develop, refine, and encourage adherence to financial policies that promote and support the ISSUES: city’s sound fiscal health, safeguard the city’s assets, and maintain the city’s bond ratings.

Audit, develop, enhance, maintain, and support financial systems to ensure integrity of financial operations, timely production of payroll, and adherence to laws and regulations.

Develop revenue projections to ensure appropriate estimates of non-property tax resources.

Coordinate and monitor financial activity of grants to ensure compliance with grantor agency requirements.

Efficiently manage the debt issuance process to maximize competitive bidding activity as well as minority and/or disadvantaged business participation.

Issue debt in adequate amounts and within acceptable time horizons to limit potential arbi- trage rebate costs as well as interim utilization of general city moneys for financing purposes.

Efficiently manage the Public Debt Amortization Fund (PDAF) to maximize fund returns consistent with statutory and liquidity requirements.

Manage and evaluate the city’s debt to identify and quantify potential opportunities for refunding, restructuring, defeasance, or similar cost saving initiatives.

INITIATIVES Continue to improve the city’s financial system and processes. FOR 2004: Conduct a functional needs study of the Comptroller’s Office divisions to include a review of staffing, functional responsibilities, and reporting relationships

Review Public Debt Amortization Fund balance policy.

Maintain the Internet-based bid submission process, which supplements the more traditional sealed bid submission process.

Execute a funding plan to reduce the Milwaukee Public Schools (MPS) unfunded pension liability to the State of Wisconsin Retirement System.

Consolidate the Public Debt Commission into the Comptroller budget.

BACKGROUND

The City of Milwaukee Comptroller is an elected general oversight of city activities to ensure official whose duties include administration of city compliance with Generally Accepted Accounting financial activities, such as general and grant Principals (GAAP) and various other regulations accounting, payroll, debt issuance and management, imposed by city ordinance, state law, or grant and auditing. The Comptroller also provides contract.

78 2004 PLAN AND BUDGET SUMMARY COMPTROLLER

The Comptroller advises other city policymakers on kee City Charter (Chapter 15) established a “Public financial matters involving the city. The Comptrol- Debt Commission” to superintend the issuance of ler, his deputy, and his special deputies provide city debt. Such superintendence extends to deter- leadership and representation to city sponsored mining the timing, structuring, call provisions, and committees and various projects. These committees similar aspects of both city general obligation and include the Common Council’s Finance and Person- revenue anticipation borrowings. The commission is nel Committee, the Community Development also charged with oversight of the Public Debt Am- Committee, the Wisconsin Center District Board, the ortization Fund, a fund created by Wisconsin State Charter School Review Committee, the Pension Statute for the purpose of debt retirement. Such Board, Pabst Theater Board, City Records Commit- oversight consists of both investment and use re- tee, Milwaukee Information Policy Committee, Mil- sponsibilities for the fund. waukee Economic Development Committee (MEDC), Neighborhood Improvement Development The commission is comprised of three city residents Corporation (NIDC), Summerfest, Purchasing Ap- appointed by the Mayor and confirmed by the peals Board, and the Deferred Compensation Board. Common Council. The City Comptroller serves as the ex-officio secretary to the commission and the The 2004 budget consolidates the Public Debt Com- City Treasurer serves as the ex-officio treasurer to mission with the Comptroller’s Office. The Milwau- the commission.

OBJECTIVE 1

Provide independent financial and program Outcome Indicators and Funding analysis to ensure city compliance with federal, state, local requirements, and to 2002 2003 2004 meet city financial obligations in a complete Experience Budget Projection and timely manner as measured by the fol- Accuracy of revenue 101.7% 100.0% 100.0% lowing: estimates. Completed audit reports. 11 10 10

• Estimate revenues within 100% to 102% Funding by Source: of actual revenues; and Operating Funds $1,397,702 $1,411,408 $1,398,028 • Complete a minimum of ten audits. Total: $1,397,702 $1,411,408 $1,398,028

OUTCOME HISTORY Office produced eleven audits. The following audits The Comptroller’s Office performance is measured were among those completed: by the accuracy of the city’s budgeted revenue estimates. For 2002, actual revenues exceeded the • Performance Audit of City’s Anti-Graffiti Pro- Comptroller’s budgeted revenue estimates by $8.6 gram; million with actual revenues totaling 101.7% of the • Audit of 2001 Payroll W-2’s; 1 estimates , well within the Comptroller’s perform- • ance standard. As shown in Figure 1, with the ex- Real Estate Tax Exemptions Audit; ception of 1998, the Comptroller has estimated reve- • Audit of City Tow Lot Operations; nues within 2% of actual revenues received in each • Audit of City Clerk License System; of the last ten years. These conservative, accurate • Performance Audit of Health Department Res- revenue estimates help the city avoid deficits and the taurant Regulation; deferral of this year’s costs to next year’s tax levy. • Audit of City Treasurer’s 2001 Cash Processing and Accounting; and A second measure of performance is the Comptrol- • Audit of City Payroll System Software Upgrade. ler’s audit activity. During 2002, the Comptroller’s During 2003, a number of audits have been accom- 1 This comparison of actual to budgeted revenues is plished or will be completed including: made after eliminating revenues budgeted with an equal, offsetting expenditure amount.

2004 PLAN AND BUDGET SUMMARY 79 COMPTROLLER

• Compliance Audit of Development Con- Figure 1 tracts Managed by the Department of City Development; Comparison of Actual General City Revenue to • 2002 Payroll W-2 Audit; Budgeted General City Revenue • 2002 Audit of City Treasurer’s Cash $510 Processing; $495 • Water Department Billing and Collec- tions; $480 • Legislative Fund Audit; $465 • Audit of City Credit Card Usage and $450 $435

Process; In Millions • Third District Police Station Capital Proj- $420 ects Audit; and $405 • Department of Public Works Billing and $390

Collections Audit. $375 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

The Comptroller’s Office continued to pro- Actual Budget vide independent analyses of proposed economic development projects to determine ated. The audits that have been successfully com- their likely success and the need for city financial pleted include the Audit of Basic Health Insurance assistance. Since the beginning of 2002, the Comp- Plan, Audit of Payroll System Software Upgrade troller has examined ten major development projects Process, Restaurant Regulation Audit and an Audit including the relocation of Sigma Aldrich Corpora- of the Police Facility Construction Project. tion to the city’s northside. The Comptroller assisted the Department of City Development in negotiating Recovering City Funded TID Costs: Since the early the terms of the Sigma Aldrich Corporation reloca- 1970’s, the Tax Incremental District (TID) Program tion. has spurred the addition of well over $400 million in property value. The city induces private develop- The Comptroller’s Office will dedicate approxi- ment in a target geographic area (Tax Incremental mately $1.4 million to accomplishing these objectives District) by making public improvements and loans in 2004. to developers. The city later recovers its costs through the additional property taxes generated ACTIVITIES (from all local governments) by the new development. However, since each TID project normally • Auditing requires 15 to 22 years to generate the property • Revenue estimates value necessary to repay city costs, the city loses • Review economic development projects many years of interest earnings on the funds it initially provided. Starting in 2003, the Budget and PROGRAM CHANGES Policy Division, the Department of City Develop- ment, and the Comptroller’s Office are proposing Pilot Audit Project: In 1999, the Comptroller began that the city include this “carrying cost”, or lost in- a pilot audit project aimed at utilizing targeted con- terest cost, in the amount to be recovered by the city sultant assistance to expand the Comptroller’s audit from future property taxes generated within a TID. expertise and personnel resources. Thus far, four Such a change will reduce future tax levies for this consultant assisted audit projects have been initi- purpose by over $900,000.

OBJECTIVE 2

Process, maintain, analyze, and report on financial OUTCOME HISTORY position and operating results in such a manner as to ensure accuracy, efficiency, and reliability as The official accounting records of the city play an measured by an unqualified audit opi nion in 2004. important role in its operations. Without reliable

80 2004 PLAN AND BUDGET SUMMARY COMPTROLLER

information on accounts payable, accounts Outcome Indicators and Funding receivable, and payroll the city could not meet its obligations; bills would go unpaid; 2002 2003 2004 city employees would not receive paychecks; Experience Budget Projection and important services could not be pro- Unqualified audit opinion Yes Yes Yes vided. by the city's outside auditor. Reliable accounting records help the city de- Funding by Source: termine its present financial position. They Operating Funds $3,194,014 $3,593,635 $3,262,757 also serve to guide its future direction. Yet, Grant and Reimbursable 402,622 635,913 485,767 despite the importance of maintaining accu- Total: $3,596,636 $4,229,548 $3,748,524 rate account information, it is difficult to measure the effect of such records separately. government-wide financial reporting (to provide a Timely, reliable, and accurate accounting records are clear picture of the government as a single unified essential to delivery of important public services entity), additional long term focus for governmental such as garbage collection and public health services. activities (including inflows, outflows, and balances Systematic audits of the accounting system warrants of spendable financial resources), narrative overview against failures in important information by ensur- and analysis (of the basic financial statements), in- ing that accurate accounting records are being kept. formation on major funds (to highlight those funds’ In 2004, a total of $3.8 million in operating and grant activities), and expanded budgetary reporting (in- funds will be allocated to this objective. cluding comparison of the original budget to actual activities and elimination of aggregated budget pres- ACTIVITIES entations). This major change in financial reporting is intended to make financial statements more useful • General accounting to specialized users, governmental officials, and the • Payroll administration public. • Oversight of federal, state, and other financial The new Governmental Accounting Financial Re- assistance porting Model (GASB 34) was implemented by the • Coordination of the city’s financial operations City of Milwaukee in 2003 for 2002 financial report- and systems ing.

PROGRAM CHANGES In 2004, Comptroller’s Office staff will continue to review and improve procedures and processes to Functional Study: The 2003 budget included efficiently address the new financial reporting re- $30,000 for an outside study of the functional areas quirements. The 2004 budget includes $404,000 for of the Comptroller’s Office. Changes in technology this implementation. and process procedures necessitate a review of staffing, functional responsibilities, and reporting Sarbanes–Oxley Act: Public accounting firms and relationships. This study should aid the Comptroller public companies have been dramatically effected by in improving the efficiency and work effectiveness of the passage of the Sarbanes-Oxley Act of 2002. The this division. It is likely that this study will not be- act establishes a Public Company Accounting Over- gin until after the financial system upgrade in mid- sight Board that will have authority to establish 2004. auditing standards, study partner rotation schedules and inspect auditors’ performance. While the city is Governmental Accounting Standards (GASB) not a public company, the dramatic changes caused Statement #34: In June, 1999 the GASB established by the Sarbanes-Oxley Act will effect the City of a new framework for the financial reports of state Milwaukee’s audits and its relationship with its and local governments. While the new government auditors. The Comptroller’s Office will work coop- reporting model retains many features of the current eratively in 2004 with the city’s external auditors and public sector accounting and financial reporting the city’s internal financial managers to invoke the model, several new features were added, including spirit of the Sarbanes-Oxley Act.

2004 PLAN AND BUDGET SUMMARY 81 COMPTROLLER

OBJECTIVE 3 Outcome Indicators and Funding

Maintain the city’s general obligation bond 2002 2003 2004 ratings in 2004 through effective issuance, Experience Budget Projection management, and reporting of city debt in Bond Rating (Fitch). AA+ AA+ AA+ compliance with applicable laws and reg u- Funding by Source: lations, and management and reporting of Operating Funds $0 $0 $576,681 the investment and performance of the Pub- Total: $0 $0 $576,681 lic Debt Amortization Fund. dedicate approximately $577,000 towards maintain- OUTCOME HISTORY ing the city’s bond rating.

Retaining the city’s high “investment grade” bond ACTIVITIES ratings continues to be of prime importance and serves to keep borrowing interest costs lower. The In order to maintain and improve bond ratings, the lower cost of any required borrowing, both for capi- Comptroller’s Office performs the following activi- tal and cash flow purposes, produces direct benefits ties: to the taxpayer. The city continues to maintain high investment grade ratings of AA+ from Fitch, Aa2 • New debt issuance from Moody’s, and AA from Standard & Poor’s. • Management of city debt These ratings have been maintained during the past • PDAF management year in spite of the second year of national economic downturn and 2004 reductions in state shared reve- PROGRAM CHANGES nue to municipalities included in the recently passed State of Wisconsin Budget Bill. As these ratings Monitoring Financial Performance: The depart- indicate, the city’s capacity to meet its financial ment will continue to improve its financial related commitments on outstanding obligations is very indicators as needed. Internal management indica- strong. tors for the department are used to monitor debt reserve earnings, debt interest costs, and total annual According to the rating agencies, these ratings reflect debt. Current indicators focus on the level of bond a combination of moderate overall debt burden, sales and cost, earnings of the debt reserve funds rapid debt repayment, and manageable capital compared to the Shearson Lehman Intermediate Bond needs. Strong growth in assessed value and a di- Index, minority participation, and the true interest verse tax base were also cited as strengths. The costs rate of bond sales in comparison to The Bond city’s “Infrastructure Cash Conversion” policy also Buyer 20 Index. assists in keeping the overall debt burden affordable. MPS Pension Borrowing: The state has given the In 2004, the Public Debt Amortization Fund will be authority to issue pension bonds to reduce the cost used to prepay debt due the following year. This of financing MPS’s unfunded pension liability. will have the effect of lowering the levy portion of Currently, MPS pays a portion of its unfunded the debt budget. In previous years, it was used pur- liability to the state with an 8% interest rate attached. chase debt, thus, lowering the levy in the capital This funding mechanism will allow MPS to take budget. The withdrawal for 2004 will be $4 million, advantage of current low interest rates in the bond which is $1 million less than the withdrawal in 2003. market. The city is working with MPS to effectuate this bond sale. The city’s tax stabilization reserve for 2003 and future years totaled $33.7 million at year end 2002. It’s Review of PDAF Policy: In 2004, the PDAF policy important that the city maintains a balance between will be reviewed. This review will explore the the goals of continuing to stabilize the reserve fund effectiveness of the current policy and recommend and limiting property tax increases. The city expects any necessary changes. It is the intent that any to fully replenish the tax stabilization reserve, re- modifications will be in place for the 2005 budget. sulting in a year end 2003 balance of approximately $30 million. In 2004, the Comptrollers Office will

82 2004 PLAN AND BUDGET SUMMARY COMPTROLLER

Alternative Debt Structure: Currently, most of the total MPS lease costs by over $1.7 million in current city’s debt is general obligation debt, regardless of dollars. whether or not the project will generate any revenues. Since 2000, the city budget has provided bor- The use of revenue bonds will remove taxpayer rowing authority in the form of general obligation or liability for debt payment if revenues are not revenue bonds for projects with revenue sources. available to retire the debt. It is expected that Borrowing initiatives completed in the past year projects funded with revenue bonds should have a include the refunding of $160 million in city debt, sufficient revenue stream to cover debt service or the saving the city $7.5 million in present value tax levy city should avoid investment in the project. savings. Aggressive preparation and scheduling allowed the bond sale to take place at a 30 year low To help support debt related initiatives, a new point in municipal interest rates, maximizing city structuring and tracking program will be savings. The Comptroller’s Office also executed its implemented in 2004. first competitive sale of sewer revenue bonds ($33,885,000) in 2003, assisted the Wisconsin Center Internet Bidding: In 1999, the city implemented a District in financing to avoid raising taxes to com- new Internet-based submission process. Internet plete the Milwaukee Theatre remodeling, and helped bidding was initiated with the June, 1999 sale and structure a refunding of over $34 million in city Re- has been used for all subsequent debt offerings. development Authority debt. This latter initiative These Internet sales were made with the assistance enables the Milwaukee Public Schools (MPS) to as- of either Bloomberg Financial Service or MuniAuc- sume ownership of two school buildings at the end tion and will continue in 2004. of the lease term while at the same time lowering

OTHER ACTIVITIES AND CHANGES

Special Purpose Accounts: The Comptroller’s Of- Position Changes: The 2004 budget includes the fice is responsible for several special purpose ac- addition of an Accounting Intern. This position counts totaling $3.2 million that are not defined in change reflects a reallocation of CDBG grant funding any of its objectives. Some examples of these ac- to better meet departmental needs in this area. An counts are the Reserve for the 27th Payroll ($1.90 Office Assistant III ($28,347) and an Administrative million) and the Contribution Fund ($950,000). Ad- Assistant I ($30,890) are eliminated in the 2004 ditional information can be found in the “Special budget due to a more efficient use of clerical staff. Purpose Accounts Miscellaneous” section.

2004 PLAN AND BUDGET SUMMARY 83 COMPTROLLER

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 50.55 57.63 54.53 -3.10 FTEs - Other 7.48 8.37 8.97 0.60 Total Positions Authorized 68 66 70 4 DLH - Operations and Maintenance 90,999 103,734 98,154 -5,580 DLH - Other Funds 13,464 15,066 16,146 1,080

EXPENDITURES Salaries and Wages $2,840,125 $2,994,666 $3,011,891 $17,225 Fringe Benefits 1,059,188 1,108,026 1,114,400 6,374 Operating Expenditures 612,091 854,751 1,063,175 208,424 Equipment 76,688 42,600 43,000 400 Special Funds 3,624 5,000 5,000 0 TOTAL $4,591,716 $5,005,043 $5,237,466 $232,423

REVENUES Charges for Services $390,909 $530,000 $403,000 $-127,000 TOTAL $390,909 $530,000 $403,000 $-127,000

CAPITAL PROJECTS - None

ORGANIZATION CHART

Comptroller

Deputy Comptroller Administration

Accounts Director Financial Services Director

General Payroll Financial Revenue and Accounting Administration Auditing Division Advisory Cost Division Division Division Division

Community Development Public Debt Financial Systems Support Division Block Grant Account Commission Staff

84 2004 PLAN AND BUDGET SUMMARY COMPTROLLER

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

1 0.50 $15,187 Accounting Intern To meet grant accounting workload.

-1 -1.00 $-28,347 Office Assistant III To reflect more efficient use of clerical staff. -1 -1.00 $-30,890 Administrative Assistant I

3 Public Debt Commissioner

1 1.00 $34,949 Administrative Assistant II Transfer of Debt Commission.

1 1.00 $74,600 Public Debt Specialist

-3.10 0.10 Miscellaneous Experience adjustment.

4 -3.10 0.60 $50,312 $15,187 TOTAL

2004 PLAN AND BUDGET SUMMARY 85 ELECTION COMMISSION

EXECUTIVE SUMMARY

MISSION: To conduct elections that build public trust in the democratic process.

STRATEGIC Enhance delivery of election related services. ISSUES: Increase customer satisfaction with the election process.

INITIATIVES Conduct four citywide elections in 2004, including Mayoral and Presidential elections. FOR 2004:

BACKGROUND

The Election Commission staff manages all aspects Map 1 of public elections in the City of Milwaukee. In addition to registering the 425,980 potential voters (based on the 2000 census) in Milwaukee, the commission has responsibility for establishing more than 193 polling locations with appropriate workers, supplies, and ballots on election days (see Map 1). The commission administers the statutory obligations for elected officials and potential candidates for citywide offices. Two elections are usually held during odd numbered years and four generally occur in even numbered years. In 2004, the Election Com- mission will hold four elections for the Mayor’s office and the Presidency.

The Election Commission staff is comprised of three board members, one Executive Director, an Election Services Manager, and five full time staff members whose responsibilities cover the administration of absentee voting, voter registration, voting machine maintenance, election day poll worker designation, and general office management. During the election season, 1,100 to 1,600 additional temporary poll workers are hired to staff the polling locations, register voters on-site at the polls on election days, respond to calls from voters, and process absentee ballots.

Election Commissioners are appointed by the Mayor and confirmed by the Common Council. The three Election Commissioners represent the two dominant political parties. Two of the three members represent the victorious party of the most recent guberna- torial election.

In 2002 and 2003, the Election Commission held several special elections in addition to its regularly

86 2004 PLAN AND BUDGET SUMMARY ELECTION COMMISSION scheduled ones. Citizen recalls and resignations of rework the structure of polling locations due to the elected officials led to the need for additional elec- reduction of the Common Council from 17 members tions. Additionally, the commission was required to to 15 (see Map 1).

OBJECTIVE 1

Increase customer satisfaction with the election process as measured by polling loca- Outcome Indicators and Funding tion surveys. 2002 2003 2004 Experience Budget Projection OUTCOME HISTORY Customer satisfaction with 4.4 4.9 4.6 voting experience (5 point The Election Commission’s concern for voter scale; with 5.0 being the satisfaction with the election process has con- highest rating). sistently been at the forefront of its strategic issues and initiatives. In an ongoing effort to Funding by Source: address the city’s strategic goal of ensuring Operating Funds $1,869,586 $1,001,654 $1,520,666 that residents obtain high value from city Total: $1,869,586 $1,001,654 $1,520,666 services, the Election Commission became one of the first in the state to create an Inter- net web site that allows residents to find their Figure 1 polling location simply by entering their street address. The commission’s web site Customer Satisfaction with Voting Experience allows residents to determine what aldermanic district and ward they live in, as well 6.0 as providing a list of elected municipal, 5.6 county, state, and federal officials based on 5.2 their address. The web site helps to make the 4.8 commission’s activities more efficient by re- 4.4 ducing the number of information requests 4.0 by telephone.

Voter Rating 3.6 The 2004 budget includes $1.5 million in 3.2 funding for this objective. This represents a 2.8 52% increase from last year due to the bien- 2.4 nial election cycle, as four elections will be 2.0 held in 2004. As part of the increase, the 1997 1998 1999 2000 2001 2002 Election Commission will hire 38 more temporary Office Assistants. ACTIVITIES Through voluntary surveys conducted at all polling locations, voters are given the opportunity to indi- • Conduct elections cate their level of satisfaction with the voting experi- • Supervise registration ence. As Figure 1 shows, customer satisfaction with • Communicate with the public the voting experience has been consistently above 4.5 • Enhance election technology on a 5.0 point scale. The survey is a useful tool for highlighting areas in which the commission can im- • Comply with statutory election requirements prove the voting experience. However, the survey has been administered sporadically and more com- PROGRAM CHANGES plete data needs to be gathered. Technology Review: In conjunction with the De- partment of Administration’s Information Technol- ogy and Management Division (ITMD), the Election

2004 PLAN AND BUDGET SUMMARY 87 ELECTION COMMISSION

Commission finished updating its aging computer Act” requires that Wisconsin have a statewide voter system in 2003. The new system allows for faster registration system in place by 2006. The Election updating of records and will be more reliable than Commission’s current system should be sufficient the old system. The federal “Help America Vote until that time.

OBJECTIVE 2

Outcome Indicators and Funding Encourage greater voter participation as measured by increasing voter registration. 2002 2003 2004 Experience Budget Projection OUTCOME HISTORY Percentage of eligible 79.0% 78.0% 81.0% persons who are Wisconsin has a long tradition of easy, open registered to vote. access to voting for all of its citizens. For ex- Funding by Source: ample, Wisconsin is one of only five states Operating Funds $146,078 $78,263 $119,136 allowing same day registration. The Election Total: $146,078 $78,263 $119,136 Commission strives to encourage voter participation through its work with churches, colleges and universities, and community Figure 2 based organizations. School-based initiatives attempt to register students when they be- Percentage of Eligible Voters come 18 years old. These efforts have gar- Registered to Vote nered some success, as voter registration has increased steadily over the years (see 100% Figure 2). 80% In the 2004 budget, $119,136 is allocated to encourage voter participation and registra- 60% tion. This funding supports advertising that promotes voter participation and encourages 40% those who are eligible to use absentee ballots. Percent of Eligible Voters 20% For this objective, the Election Commission measures the number of eligible residents 0% registered to vote. Voter registration and 1995 1996 1997 1998 1999 2000 2001 2002 turnout is expected to rise in 2004, as more citizens tend to register and vote in presidential elections than in other elections ACTIVITIES

• Create voting opportunities • Increase voter registration • Increase deputy registration activities

88 2004 PLAN AND BUDGET SUMMARY ELECTION COMMISSION

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 26.48 14.98 18.29 3.31 FTEs - Other 0.00 0.00 0.00 0.00 Total Positions Authorized 110 72 110 38 DLH - Operations and Maintenance 47,663 26,960 32,922 5,962 DLH - Other Funds 0 0 0 0

EXPENDITURES Salaries and Wages $665,892 $450,034 $537,574 $87,540 Fringe Benefits 257,238 108,218 110,602 2,384 Operating Expenditures 1,088,279 506,640 984,113 477,473 Equipment 4,255 15,025 7,513 -7,512 Special Funds 0 0 0 0 TOTAL $2,015,664 $1,079,917 $1,639,802 $559,885

REVENUES Charges for Services $13,267 $7,500 $13,000 $5,500 TOTAL $13,267 $7,500 $13,000 $5,500

CAPITAL PROJECTS - None

ORGANIZATION CHART

Mayor

Board of Election Commissioners

Election Commission Executive Director

General Office Election Service Division Registration Division

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason -2 -2.00 $-60,596 Office Assistant III Reclassified in 2003. 2 2.00 $66,141 Program Assistant I

38 4.18 $91,048 Temporary Office Assistant II Increase due to biennial election cycle (four citywide elections in 2004).

-1 -1.00 $-34,899 Office Assistant IV Reclassification. 1 1.00 $39,014 Administrative Assistant IV

-0.87 Various Miscellaneous adjustments. 38 3.31 $100,708 TOTAL

2004 PLAN AND BUDGET SUMMARY 89 DEPARTMENT OF EMPLOYEE RELATIONS

EXECUTIVE SUMMARY

MISSION: To assist city agencies and the Milwaukee Public School system in carrying out their respective missions by providing and helping to maintain a productive, diverse workforce that is well- trained, empowered, motivated, adequately compensated, high in morale, prepared to protect the lives and property of the citizens of Milwaukee, and fully attuned to efficient and effective customer service delivery.

STRATEGIC Facilitate change in the city’s culture and leadership to one that values customer focus, personal ISSUES: development, continuous improvement, diversity, and open and honest communication.

Define roles and relationships of labor and management, and employees and management.

Assist city departments in meeting their long term human resource needs.

Attract and retain the best employees.

Ensure the quality and effectiveness of the Fire and Police Departments’ policies, practices, and performances through appropriate utilization of the Fire and Police Commission‘s oversight authority.

INITIATIVES Recruit and select two Police Officer and one Fire Fighter recruit classes. FOR 2004: Implement a new Diversity and Outreach Office that will handle all external and internal Equal Employment Opportunity, Affirmative Action and Diversity issues as well as citizen complaints filed with the Fire and Police Commission.

Continue to improve labor/management relations.

Initiate a comprehensive review of the management pay plan structure.

Improve the employee benefit enrollment process by implementing a new e-benefits system.

Work toward a narrow network health care provision focusing on patient choice.

BACKGROUND

The Department of Employee Relations (DER) pro- workforce, and leading efforts to effect citywide or- vides services to city agencies and the Milwaukee ganizational change through course offerings in di- Public Schools (MPS), including employee selection, versity training and total quality management. compensation, job classification, equal employment opportunity, employee benefits, worker compensa- The Department of Employee Relations also admin- tion, safety training and development, and labor isters the Fire and Police Commission, a civilian body contract negotiation and administration. These serv- that oversees general policy in the Milwaukee Fire ices are provided in compliance with a variety of le- Department and the Milwaukee Police Department. gal mandates and procedures. DER focuses on re- The commission is also responsible for hiring and cruiting and retaining a well trained, diverse promotions for the two public safety departments.

90 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF EMPLOYEE RELATIONS

The Board of Fire and Police Commissioners, which forth in Sec. 62.50 Wis. Stats. and in the Milwaukee was established in 1885, is the oldest civil service City Charter. The five citizen members of the com- authority in Wisconsin and the first such commission mission are appointed by the Mayor and approved to be established by law in the United States. The by the Common Council. Members serve overlap- commission’s authority and responsibility are set ping five year terms.

OBJECTIVE 1 Outcome Indicators and Funding Find, hire, and retain the best employees possible by focusing on recruitment, hiring, 2002 2003 2004 diversity, and employee development Experience Budget Projection achieved by appointing minorities to at least Percentage of minorities 50.2% 35.0% 35.0% 35% of vacant positions and by achieving a appointed to vacancies. customer satisfaction rating of at least 4.25 Customer satisfaction with 4.14 4.25 4.25 on a scale of 1-5 in 2004. DER services (scale of 1-5).

OUTCOME HISTORY Funding by Source: Operating Funds $1,523,274 $2,553,120 $2,220,778 In the 2004 budget, $2,220,778 in operating Grant and Reimbursable 115,278 188,096 188,096 funds and $188,096 in reimbursable funds Total: $1,638,552 $2,741,216 $2,408,874 have been allocated to support this objective. The department will use these funds to focus on aggressive recruitment, selection, classifi- Figure 1 cations, and services for city departments. These activities will ensure a high quality workforce for the city’s future. Percentage of Minorities Appointed to Vacancies 70.0% Workforce management through customer 60.0% service to departments is one of DER’s most visible activities. DER annually surveys its 50.0% customers for satisfaction in the areas of re- 40.0% cruitment, exam administration, candidate quality, timeliness of the selection process, 30.0% and communication during the selection pro- 20.0% cess. The 2002 survey results revealed that 100% of the responding departments felt the 10.0% service was acceptable or better, with an aver- 0.0% age rating of 4.14 on a scale of one to five. 1996 1997 1998 1999 2000 2001 2002 General City Police Officer Fire Fighter In 2004, DER will continue to evaluate and improve all phases of the selection and hiring process, including recruitment, testing, and and Police Commission’s progress in minority hiring customer communication to meet the goals of this from 1996 through 2002. objective. DER will also continue to recruit higher levels of minorities in the city’s workforce. DER The Fire and Police Commission actively pursues strives to maintain a high rate (35% or better) of mi- increased minority and female representation in the nority appointments to job vacancies to better reflect Fire and Police Departments. The staff promotes our diverse community. In 2002, over 50% of those employment in public safety departments through appointed to vacancies were minorities compared to recruitment at high schools, job fairs, community 41% in 1994. Figure 1 illustrates DER and the Fire events, and through community groups. In 2002,

2004 PLAN AND BUDGET SUMMARY 91 DEPARTMENT OF EMPLOYEE RELATIONS

33% of all Police Officer appointments and Figure 2 54% of all Fire Fighter appointments were minorities meeting the goals for both departments. This is the highest level in history for Disciplinary Action, Termination, Resignation, and Fire Fighter recruits. Female recruitment ex- Citizen Complaint Rate for New Police and Fire Hires ceeded its goal in the Police Department with 25% 21% of recruits being female. Female Fire Fighter recruits for 2002 decreased from the 20% 1998 high of 14% to 6%, but still met its goal of 5%. 15%

The Fire and Police Commission is charged 10% with ensuring that the Fire and Police De- partments have quality employees, appropri- 5% ate policies and practices, and satisfactory performance by employees and management. The commission tracks the overall discipli- 0% 1996 1997 1998 1999 2000 2001 2002 nary action, termination, resignation, and citizen complaint rate for new hires as its primary indicator of success in this area. For policies to keep pace with changes in laws, will fa- purposes of this indicator, new hires are defined as cilitate training on its Equal Employment Opportu- Police and Fire Academy graduates who are in their nity and Affirmative Action issues, prepare a bian- first four years of service. Figure 2 demonstrates the nual citywide Diversity Equal Employment Oppor- rate over the past seven years. After peaking at 23% tunity and Affirmative Action Plan, and investigate in 1998, it declined to 21% in 2002. internal and external complaints.

ACTIVITIES Specifically, the office will investigate three types of complaints: discrimination or harassment in the • Staffing workplace by city employees, discrimination against • Classification any city resident in employment or housing, and • Entry level testing complaints filed by any citizen who believes they • Promotional testing were treated in a manner that violates Fire and Police • Recruitment Commission or departmental rules by a member of the Police or Fire Departments. Through investiga- • Succession planning tion and resolution of these complaints, the office • Intern and auxiliary resource programs aims to make the city a safe, positive, and diverse • Equal Employment Opportunity and Affirmative place in which to work and live. Three reclassified Action and retitled positions, a Diversity Outreach Officer • Diversity policy and two Diversity Specialist Senior, will perform • Police and Fire monitoring and oversight these responsibilities. Two other positions have been • Outreach and community relations eliminated from this area, a Diversity Officer and an Office Assistant II. PROGRAM CHANGES Management Pay Plan Review: The Compensation Diversity and Outreach Office: In 2003, DER cre- Section will perform a review of the pay structure ated a new initiative to promote the importance, and classification levels for management pay plan benefit, and necessity of maintaining diversity within employees in 2004. It has been 15 years since these the workforce and to ensure compliance with appli- positions have been comprehensively reviewed for cable city policies, state and federal laws, and regu- comparability across positions and accuracy of pay. lations regarding Equal Employment Opportunity The project envisions the use of market surveys and and Affirmative Action. A new Diversity and Out- benchmarking with comparable cities in the Mid- reach Office will develop, revise, and disseminate west. Final project design will be determined by ex-

92 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF EMPLOYEE RELATIONS isting departmental staff and will likely be supple- The responsibilities of this manager will be absorbed mented by student help from the University of Wis- by an Employment Administrator, salary grade 08, consin Milwaukee for data collection. which will be reclassified to an Employment Man- ager, salary grade 10. Additionally, an Administra- Management Reduction: In 2004, one Human Re- tive Specialist, salary grade 02, will be reclassified to sources Manager has been eliminated in the Staffing Management Services Specialist, salary grade 03. Section. It was determined that a management re- Total savings related to these changes is approxi- duction would have a lesser impact on productivity mately $82,000 in 2004. than further reducing the frontline workforce in DER.

OBJECTIVE 2 Outcome Indicators and Funding Maintain a competitive salary and benefits package as measured by maintaining 95% of 2002 2003 2004 total eligible employees enrolled in the Experience Budget Projection health and dental programs. Percent of eligible 87.4% 95.0% 95.0% employees enrolled in OUTCOME HISTORY health care program. Percent of eligible 86.7% 95.0% 95.0% employees enrolled in Two major components in maintaining a well dental care program. qualified workforce and attracting qualified Funding by Source: applicants for city service are the compensa- Operating Funds $2,099,012 $2,117,278 $2,129,971 tion and benefits offered. DER relies heavily Special Purpose Accounts 83,753,342 89,417,000 89,561,690 on workforce data to ensure an appropriate Total: $85,852,354 $91,534,278 $91,691,661 level of competitiveness with external employers and internal equity among employees. In the 2004 budget, $2,129,971 in operat- PROGRAM CHANGES ing funds and $89,561,690 in special purpose account funding is dedicated to meet this objective. E-Benefits Technology Initiative: During 2003, DER was awarded a Technology Fund Initiative project of One of the primary indicators of whether the city of- $275,000. The project plans to establish an online e- fers a competitive salary and benefits package is en- benefits process for health, dental, flexible choice, rollment rates for health and dental programs. In and long term disability benefits plans. This would 2002, 87.4% of eligible employees were enrolled in connect directly to the city’s PeopleSoft information the health care program and 86.7% of eligible em- management system, allowing employees to view ployees were enrolled in the dental care program. benefits and make enrollment decisions related to This is a decline from recent years, probably due to benefits right on their desktop or at a shared kiosk. employees shifting to their spouses’ coverage as costs increase. This project begins to eliminate the multiple copies of paper that both the city and the benefits vendors ac- ACTIVITIES cumulate with the annual open enrollment process, as well as the form entry time when changes are • Health and dental care made. Entry errors would be reduced and enroll- • Worker’s compensation ment information could be directly transmitted be- • Occupational health tween the city and the benefit vendors, greatly re- • Employee safety ducing processing time, staffing, and supply needs. • Long term disability • Commuter value pass Position Changes: In 2004, two positions are eliminated in the area of Compensation and Benefits, a • Preplacement exams and drug testing Medical Benefits Assistant III, and an Unemployment • Unemployment compensation Compensation Specialist. The Unemployment Com-

2004 PLAN AND BUDGET SUMMARY 93 DEPARTMENT OF EMPLOYEE RELATIONS pensation Section will be managed by a former Net- classified to Employee Relations Specialist. This work Coordinator Associate position that will be re- change saves approximately $88,000 in 2004.

OBJECTIVE 3

Create an organizational climate that en- Outcome Indicators and Funding courages every city employee to share the city’s vision and mission and to participate 2002 2003 2004 in achieving the city’s objectives by aiming Experience Budget Projection to settle all 19 labor contracts voluntarily Number of contracts 17 19 19 and encouraging at least 1,750 requests for settled voluntarily. Number of employees 2,277 1,750 1,750 tuition benefit reimbursement in 2004. requesting tuition benefit reimbursement. OUTCOME HISTORY Funding by Source: DER meets this objective by utilizing a vision Operating Funds $1,128,129 $906,095 $726,513 that city employees are the backbone of the Grant and Reimbursable 156,510 61,108 0 entire organization. In the 2004 budget, Special Purpose Accounts 774,500 810,000 810,000 $726,513 in operating funds and $810,000 in Total: $2,059,139 $1,777,203 $1,536,513 special purpose account funds support this objective. The department will work toward ACTIVITIES establishing fair and mutually respectful employment relations by fully and fairly representing the • Labor negotiation interests of the city through the adoption of the • Labor unit contract administration “win-win” bargaining process. This philosophy establishes a non-adversarial negotiating process by • Labor management dispute resolution looking beyond the individual needs of the negotia- • Workplace Violence Prevention Program tion process to the city’s collective interests and • Employee Training Program needs. Since 1993, all but two labor agreements have • Tuition reimbursement been settled voluntarily. In 2004, DER will work to • Total quality improvement negotiate successful agreements with all 19 of the city’s bargaining units. PROGRAM CHANGES

Additionally, DER is charged with the task of ensur- Employee Placement Program: Budget reductions in ing the city’s workforce has adequate skills to be ef- the 2004 budget and in the 2003 budget adjustment fective in the workplace. To this end, DER offers a plans will result in the loss of numerous permanent wide variety of computer training, leadership devel- positions. During 2003, the Department of Employee opment, customer service, and other courses to city Relations developed an Employee Placement Pro- employees. These courses reflect the wide variety of gram for those employees at-risk for layoff due to software used by city departments and general skills these reductions. Employees in the program will be needed to be an effective employee. About 200 given special consideration for city vacancies and classes are conducted each year. In 2002, DER other assistance to support their pursuit of re- trained 1,860 employees through its courses. Train- employment. The primary goal of the program is to ing provided by the city is supplemented with the minimize the number of employees laid-off. Proac- Tuition Reimbursement Program, where employees tive efforts to retain loyal employees, will improve are eligible to receive reimbursement for coursework, morale, and save on training and unemployment participation in professional associations, and other compensation costs. This program will extend external training events. through mid-2004 or until all at-risk employees have been placed.

94 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF EMPLOYEE RELATIONS

Labor Relations Section: One position, a Labor Re- sources Representative from the Staffing Section will lations Representative, has been eliminated from this assume the responsibilities of this position. section in 2004 for savings of $46,000. A Human Re-

OTHER ACTIVITIES AND CHANGES

Strategic Planning Process: Now that the merger Special Purpose Accounts: The Department of Em- with the Fire and Police Commission has physically ployee Relations will administer $90,371,690 in spe- taken place, it has become necessary for the com- cial purpose accounts in 2004, including: bined department to revisit its strategic direction. Beginning in 2003, DER will undertake a comprehen- • Employee Health Care $79,901,100 sive revision of its mission, goals, and objectives and • Worker’s Compensation $7,778,590 incorporate them into a new strategic plan. The de- • Unemployment Compensation $1,200,000 partment has formed a committee to evaluate statu- • Tuition Reimbursement $760,000 tory requirements of the department and its various • Long Term Disability Insurance $552,000 activities and anticipates the new plan will be in • Commuter Value Pass $95,000 place by early 2004. • Employee Training Fund $50,000 • Flexible Spending Account $35,000

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 64.72 69.24 65.65 -3.59 FTEs - Other 2.70 8.60 7.60 -1.00 Total Positions Authorized 84 105 99 -6 DLH - Operations and Maintenance 116,498 124,632 118,170 -6,462 DLH - Other Funds 4,857 15,480 13,680 -1,800

EXPENDITURES Salaries and Wages $3,131,414 $3,572,366 $3,288,372 $-283,994 Fringe Benefits 1,146,493 1,321,776 1,216,698 -105,078 Operating Expenditures 462,617 533,359 422,828 -110,531 Equipment 9,716 66,992 10,000 -56,992 Special Funds 0 82,000 139,364 57,364 TOTAL $4,750,240 $5,576,493 $5,077,262 $-499,231

REVENUES Charges for Services $307,854 $300,000 $205,000 $-95,000 TOTAL $307,854 $300,000 $205,000 $-95,000

CAPITAL PROJECTS - None

2004 PLAN AND BUDGET SUMMARY 95 DEPARTMENT OF EMPLOYEE RELATIONS

ORGANIZATION CHART

Mayor

Employee Relations Director City Service Commission

Fire and Police Commission Fire and Police Commission Executive Director

Administration Employee Benefits Operations

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason Administration Division 1 1.00 $65,883 Business Operations Manager Reclassification. -1 -1.00 $-61,451 Management and Accounting Officer

-1 -1.00 $-26,261 Office Assistant II Transferred to Operations Division and reclassified.

1 1.00 $70,585 Diversity Outreach Officer

1 1.00 $45,779 Diversity Specialist Sr New Diversity and Outreach Office.

1 1.00 $45,779 Diversity Specialist Sr

-1 -1.00 $-65,496 Certification and Salaries System

-1 -1.00 $-41,977 Pay Services Specialist Transferred to Operations Division.

-2 -2.00 $-78,644 Program Assistant II

-1 -1.00 $-34,183 Office Assistant III Transferred to Operations Division and reclassified.

-1 -1.00 $-47,604 Administrative Specialist

1 1.00 $49,499 Management Services Specialist Reclassification for increased responsibilities. -1 -1.00 $-52,028 Network Coordinator Associate

1 1.00 $53,790 Employee Relations Specialist

96 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF EMPLOYEE RELATIONS

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-45,894 Labor Relations Representative Position eliminated.

Employee Benefits Division -1 -1.00 $-55,654 Unemployment Compensation Specialist Positions eliminated.

-1 -1.00 $-34,140 Medical Benefits Assistant III

1 1.00 Employee Benefits Specialist Retitled. -1 -1.00 Benefits Specialist

-1 -1.00 $-79,313 Worker's Compensation and Safety Administrator Reclassification. 1 1.00 $87,924 Worker's Compensation and Safety Manager

Operations Division 1 1.00 $65,496 Certification and Salaries System Administrator Transferred from Administration 1 1.00 $41,977 Pay Services Specialist Division.

2 2.00 $78,644 Program Assistant II

1 1.00 $34,371 Program Assistant I Transferred from Administration Division and reclassified. 1 1.00 $34,183 Personnel Clerk

-1 -1.00 $-69,757 Public Relations Officer

-1 -1.00 $-65,496 Diversity Officer

-1 -1.00 $-42,017 Community Relations Specialist Sr New Diversity and Outreach Office.

-1 -1.00 $-44,755 Equal Rights Specialist Sr

-1 -1.00 $-29,332 Office Assistant II

-1 -1.00 $-90,108 Human Resources Manager Position eliminated.

-1 -1.00 $-69,792 Employment Administrator Reclassification for increased responsibilities. 1 1.00 $75,796 Employment Manager

1.00 -1.00 $63,006 $-63,006 Human Resources Training Reimbursable eliminated. Coordinator

1.41 Miscellaneous Adjustment -6 -3.59 -1.00 $-221,190 $-63,006 TOTAL

2004 PLAN AND BUDGET SUMMARY 97 FIRE DEPARTMENT

EXECUTIVE SUMMARY

MISSION: To protect people and property within the city. The department responds to the needs of citizens by providing rapid, professional, and humanitarian services essential to the health, safety, and well being of city residents.

STRATEGIC Provide fire and life safety educational services, which will reduce the incidence of fire and ISSUES: emergency medical events to citizens.

Reduce personal injury, fatalities, and property loss through the timely provision of fire suppression, emergency medical, and other emergency services unique to the changing threats to our society.

Timely provision of fire suppression, emergency medical, and other emergency services that help make the city a desirable and safe place to live, work, and conduct business.

Reduce the loss of Fire Fighters to other jurisdictions as this is costly to the department both in terms of losing experienced personnel as well as training new recruits.

INITIATIVES Continue to provide fire prevention education programs to citizens, including the Fire Fight- FOR 2004: ers Out Creating Urban Safety (FOCUS), Operation First Responder, Sesame Street, Elder Safe, and Survive Alive Programs.

Implement the “Sleep Safely” Program throughout Milwaukee neighborhoods to further prevent and minimize the effects of fire and other trauma.

Strengthen the Emergency Medical Services (EMS) system by working to establish contracts with private ambulance providers for Basic Life Support (BLS) services and continuing participation in the countywide paramedic system.

Modify staffing levels on some non-special teams engine companies from five Fire Fighters to four.

Focus on Fire Fighter safety through investments in equipment and training.

Consolidate the Bureaus of Emergency Medical Services and Special Teams into a new Bureau of Special Operations.

BACKGROUND

The Milwaukee Fire Department (MFD) has pro- The department has dramatically increased its fire vided public safety services since 1875. The depart- prevention activities since the late 1980’s. A high ment currently operates 36 fire houses that are geo- number of fire deaths in 1987 (31) prompted the graphically organized into six battalions. Housed in department to take an aggressive, interactive ap- these facilities are 37 engine companies, 16 ladder proach to fire prevention and safety education. In companies, 9 paramedic units, and 3 rescue squads. 1997, the Fire Department began providing fire in- Some units have the added responsibilities of special spection services for public buildings. It also works teams: Dive Rescue, Hazardous Materials (HazMat), with building managers to identify any potential fire and the Heavy Urban Rescue Team (HURT). hazards.

98 2004 PLAN AND BUDGET SUMMARY FIRE DEPARTMENT

Since the 1970’s, the department has provided participates in a system to provide basic life support Emergency Medical Services (EMS). EMS calls con- services with private sector ambulance providers, stitute nearly 80% of all requests to the Fire Depart- and provides paramedic or advanced life support ment for emergency services. The department also services under Milwaukee County oversight.

OBJECTIVE 1

Reduce the number of fire deaths, as measured by a three year average to six or below Outcome Indicators and Funding in 2004 through educating the public about 2002 2003 2004 services available in the City of Milwaukee Experience Budget Projection that reduce the incidence of fire, morbidity, Three year average 7.0 6.0 6.0 and negative environmental impacts. number of fire deaths.

Funding by Source: OUTCOME HISTORY Operating Funds $12,183,595 $11,704,277 $13,062,444 Grant and Reimbursable 350,000 462,000 462,000 Fire deaths ranged from a high of 31 in 1987 to a low of 4 in 1998. Figure 1 shows the Total: $12,533,595 $12,166,277 $13,524,444 overall decline in the three year moving average of fire deaths since the late 1980’s. Re- Figure 1 ductions in the number of fire deaths have coincided with increased efforts in fire pre- Milwaukee Fire Deaths vention. In the 2004 budget, $13.1 million of operating funding and $462,000 of grant (Three Year Moving Average) funding is allocated to this objective. 25

Many of the department’s programs empha- 20 size fire prevention, because fewer fires create fewer situations where a fire death could 15 occur. FOCUS, the department’s major fire prevention program, is provided in areas of 10 the city with the highest incidence of fires. In 2002, Fire Fighters installed 502 smoke detectors, 314 fire alarm batteries, and visited over 5 1,390 residences as part of this program. 0 Educational programs, such as Survive Alive 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 House and Sesame Street, teach children how to react when there is a fire in the home, including proper escape procedures and calling 9-1-1. • Operation First Responder Fire prevention programs like Sesame Street, Elder • Inspections Safe, the Survive Alive House, Mobile Survive Alive Houses, and others reached 139,229 citizens through PROGRAM CHANGES 985 programs in 2002. Fire Fighters Out Creating Urban Safety (FOCUS): ACTIVITIES The FOCUS Program centers around Fire Fighters going door-to-door in high fire risk areas to install • Fire prevention smoke detectors, replace batteries, and distribute fire • FOCUS Program prevention information in an effort to increase fire prevention knowledge and decrease fire deaths. • Survive Alive House/Mobile Survive Alive Trailers The FOCUS Program has been partially funded • Elder Safe Program through Community Development Block Grant

2004 PLAN AND BUDGET SUMMARY 99 FIRE DEPARTMENT

(CDBG) funds since the 2002 budget. CDBG funds provide fire prevention education throughout the are allocated to the Fire Department to expand the City of Milwaukee. This new program will focus on FOCUS Program throughout the Neighborhood the communities around the city’s 36 fire houses by Strategic Planning (NSP) area. The expanded providing residents with fire prevention informa- FOCUS Program ensures that citizens in these areas tion. As part of this program, Fire Fighters will can- receive information to protect them from home, vas the neighborhoods in their response areas to health, and fire hazards. In addition to fire educa- locate, test, and install smoke detectors, develop tion and smoke detector inspections, Fire Fighters emergency exit plans with residents, and distribute also conduct blood pressure/stroke screenings, emergency contact information. The goal of this new home safety inspections, and provide 9-1-1 and so- program is to increase fire prevention knowledge cial service access information to residents. The 2004 and decrease fire deaths in neighborhoods outside of budget provides $462,000 in CDBG funding to con- the traditional FOCUS areas. The Fire Department tinue this expanded program. hopes to partner with local businesses and individuals to support this program in 2004. “Sleep Safely” Program: In 2004, the Fire Depart- ment will implement the “Sleep Safely” Program to

OBJECTIVE 2

Reduce effects of personal injury and property loss through timely provision of fire Outcome Indicators and Funding suppression, emergency medical, and other 2002 2003 2004 emergency services as measured by a re- Experience Budget Projection sponse time of five minutes or less for 95.0% Percentage of responses 92.6% 95.0% 95.0% of calls received in 2004. within five minutes of call.

OUTCOME HISTORY Funding by Source: Operating Funds $69,040,373 $66,728,916 $76,314,662 In 2002, the Fire Department responded to Grant and Reimbursable 4,725,228 5,018,628 178,588 roughly 64,000 incidents. Response time to Capital Budget 2,194,952 5,105,000 5,840,000 these incidents totaled five minutes or less in Total: $75,960,553 $76,852,544 $82,333,250 92.6% of all cases. While slightly lower than the 95.0% goal, the 2002 response time data shows improvement in this area over past Figure 2 years. For example, for the years 1993, 1995, and 1996 only 90.5% of calls were responded Percentage of Responses to within five minutes. Under Five Minutes 95% Figure 2 illustrates that response times tend to lengthen during the winter months when 94% weather conditions can adversely affect 93% travel. The trend line indicates that the per- 92% centage of calls responded to in five minutes Trend or less has improved slightly between 2001 91% and 2002. The Fire Department’s goal is to 90% improve this trend in 2004 by responding to 95.0% of calls received in less than five min- 89% utes. 88% In the 2004 budget, $76.3 million in operating 87% resources will contribute to a total of $82.3 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov million allocated to this objective. 2001 2002

100 2004 PLAN AND BUDGET SUMMARY FIRE DEPARTMENT

ACTIVITIES cient Fire Department response to HazMed situations and better coordination of special events. One • EMS operations position of Deputy Chief will be eliminated as part • Fire suppression of this consolidation for savings of $86,427. • Special teams emergency services Strengthen Emergency Medical Services (EMS) • HazMat • HURT Basic Life Support Services (BLS): Basic Life Sup- • Dive Rescue port calls include requests for medical assistance • Facility and equipment maintenance where the caller’s complaint is not life threatening. • Inspections When a patient is taken to the hospital, the primary private ambulance provider assigned to that sector PROGRAM CHANGES conducts the transport. Currently, the MFD provides BLS level transports on a back-up basis when Modifying Staffing on Engine Companies: In 2004, private providers are unable to respond to a call the Fire Department will change staffing levels on 14 within the required response times. of its 18 non-special teams single engine companies from five Fire Fighters to four. The remaining four In 2004, the City of Milwaukee will work to establish single engine companies will continue to be staffed service contracts with private ambulance companies at five Fire Fighters and these companies will be for the upcoming 2005-2009 contract period. The assigned by the Fire Chief to areas of the city with main objectives of these contracts will be to the greatest need. Staffing levels on special teams strengthen and improve BLS transport services by engine companies and ladder companies will also standardizing care levels among providers, estab- remain at five Fire Fighters in 2004. This staffing lishing measures on which to evaluate patient care change will create savings of $2.5 million in salary and provider performance, and recovering a portion and overtime costs. of the city’s dispatch costs for these calls. The city has a goal of executing contracts with each of the Focus on Fire Fighter Safety: In 2004, the Fire five private ambulance providers by January 1, 2005. Department will implement several new initiatives to insure the safety of its Fire Fighters. An Advanced Life Support Services (ALS): Milwaukee additional $260,000 is included in the equipment Fire Department Paramedics provide Advanced Life budget for the purchase of new radios, air cylinders, Support (ALS) treatment for patients with life and self-contained breathing apparatus. The capital threatening, or potential life threatening, illnesses or budget includes an additional $25,000 per apparatus injuries. In 2003, the MFD’s Paramedic Program purchased in 2004 for a thermal imaging camera. included nine Mobile Emergency Department (MED) Finally, the MFD will establish a training program units and five Paramedic First Responder (PFR) for all officers with a focus on maintaining safety in engine companies. the fire house and in emergency situations. The Milwaukee Fire Department Paramedic Pro- gram operates as part of a countywide paramedic Create the Bureau of Special Operations: The 2004 system, but primarily serves the City of Milwaukee. budget consolidates the Bureaus of Emergency The countywide system is the responsibility of the Medical Services and Special Teams into a new Bu- Milwaukee County Division of County Health Re- reau of Special Operations. This consolidation will lated Programs (CHRP), who contracts with the City integrate the Fire Department’s Emergency Medical of Milwaukee for ALS level services. Services (EMS), HazMed Response System, specialized rescue (HURT, Dive, and HazMat Teams), and In 2004, the city will enter into a new contract with special event activities. Milwaukee County for its Paramedic Program. As part of this contract, the city will increase the num- Currently, EMS and Special Teams personnel re- ber of MED units by one (from nine in 2003 to ten in spond to emergency incidents together. By com- 2004). The new unit will be put into service July 1, bining the two sections, the department will insure 2004, and will serve the northwest part of the city. that the response will be coordinated appropriately This additional unit will improve ALS services not and effectively. Other advantages of this consolida- only in the northwest area but strengthen the para- tion include expanding the staff base available for medic system citywide. special teams functions, a more effective and effi-

2004 PLAN AND BUDGET SUMMARY 101 FIRE DEPARTMENT

The City of Milwaukee anticipates receiving ap- tem. In 2004, this payment will be a reflected as proximately $4.9 million in 2004 from Milwaukee revenue to the department as opposed to a grant County as its payment for participating in this sys- payment.

OTHER ACTIVITIES AND CHANGES

Business Operations Manager: The 2004 budget ($42,085) due to reassigning these tasks to other includes one new position of Business Operations MFD Repair Shop staff. Two positions of Carpenter Manager. This new position will manage all aspects ($103,792) and one position of Custodial Worker of the Fire Department’s financial operations, in- II/City Laborer ($32,666) are transferred to the Fire cluding budget preparation, expenditure and reve- Department from the Department of Public Works. nue tracking, grants management, and purchasing One position of Network Coordinator ($46,414) is functions. The budgetary impact of this new posi- created to manage the Fire Department’s new Com- tion is approximately $59,900 (excluding fringe bene- puter Aided Dispatch (CAD) System that will go fits). online in 2004.

Other Position Changes: The 2004 budget eliminates one vacant Fire Equipment Fabricator position

CAPITAL PROJECTS

The Fire Department is responsible for maintenance Fire Repair Shop Design and Construction: The of its facilities and fire stations. Included in the 2004 2002 budget included $150,000 to study the needs of budget is capital funding for several projects in- the Fire Department’s and the Department of Public cluding: $200,000 for engine house ventilation up- Work’s fleet maintenance facilities. This study is grades and window replacements, and $75,000 for now complete, and recommends that the MFD de- repair of the five story fire training tower at the sign and construct a new repair facility rather than Training Academy. remodeling the existing site. The estimate of this new facility is approximately $10.7 million over a Significant capital projects include: two to three year period. The 2004 budget includes $1.8 million for the first phase of this project. Equipment Replacement Program: The 2004 budget includes $3.8 million for the purchase of three engines, four ladder trucks, and two ambulances.

102 2004 PLAN AND BUDGET SUMMARY FIRE DEPARTMENT

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 1,182.01 1,157.49 1,146.51 -10.98 FTEs - Other 83.19 83.75 9.20 -74.55 Total Positions Authorized 1,148 1,146 1,151 5 DLH - Operations and Maintenance 3,061,970 2,684,604 2,558,512 -126,092 DLH - Other Funds 203,483 198,320 20,893 -177,427

EXPENDITURES Salaries and Wages $57,361,462 $56,415,656 $64,899,165 $8,483,509 Fringe Benefits 19,277,735 18,053,010 20,120,793 2,067,783 Operating Expenditures 3,800,359 3,503,691 3,661,642 157,951 Equipment 726,244 358,736 608,506 249,770 Special Funds 58,168 102,100 87,000 -15,100 TOTAL $81,223,968 $78,433,193 $89,377,106 $10,943,913

REVENUES Charges for Services $1,633,325 $1,450,500 $6,093,304 $4,642,804 TOTAL $1,633,325 $1,450,500 $6,093,304 $4,642,804

CAPITAL PROJECTS - Includes $5,840,000 for the following four projects: a. Major Capital Equipment - $3,765,000 b. Ventilation and Window Replacement Projects - $200,000 c. Fire Repair Shop Design and Construction - $1,800,000 d. Repair Five Story Fire Training Tower and Splashboard - $75,000

ORGANIZATION CHART

Board of Fire and Police Commissioners

Fire Chief

Supporting Services Firefighting

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason Fire Fighting Decision Unit -1 -1.00 $-86,427 Deputy Chief Fire Elimination due to creation of the Bureau of Special Operations.

10 10.00 $585,980 Fire Lieutenant Position change upon vacancy. -10 -10.00 $-585,980 Paramedic Field Lieutenant/Fire Paramedic Field Lieutenant

2004 PLAN AND BUDGET SUMMARY 103 FIRE DEPARTMENT

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-42 -42.00 $-2,492,018 Fire Fighter Reduction of personnel on single engine companies. 44 Fire Fighter (Aux.)

-1 -1.00 $-51,211 Administrative Lieutenant Transfer to Support Services decision unit.

-77.66 $5,559,265 $-5,559,265 Various Fire Fighter/Paramedic Conversion of Paramedic contract Positions from grant to operating.

3.11 $178,588 Various Fire Fighter Positions MMSD service contract.

29.22 Various Positions Reflects work reduction and FTE adjustment.

Support Services Decision Unit -1 -1.00 $-107,245 First Assistant Chief Engineer Retitled Assistant Chief's position. 1 1.00 $118,045 Assistant Fire Chief

-1 -1.00 $-73,972 Battalion Chief, Fire Reclassification of vehicle operations function. 1 1.00 $68,440 Vehicle Operations Manager

1 1.00 $76,905 Deputy Chief, Fire Position Ordinance change with -1 -1.00 $-76,905 Deputy Chief, Training and Special vacancy. Services

-1 -1.00 $-42,085 Fire Equipment Metal Fabricator Elimination of vacant position.

-1 -1.00 $-53,237 Fire Audiovisual Training Specialist Civilianization of audiovisual function. 1 1.00 $34,183 Audiovisual Specialist II

1 1.00 $51,211 Administrative Fire Lieutenant Transfer from Fire Fighting Decision Unit.

2 2.00 $103,792 Carpenter Transfer of employees from Department of Public Works. 1 1.00 $32,666 Custodial Worker II/City Laborer

1 1.00 $59,893 Business Operations Manager Improve budget and financial administration of department.

1 1.00 $46,414 Network Coordinator New CAD system management.

-1.20 Various Positions Reflects work reduction and FTE adjustment.

5 -10.98 -74.55 $3,167,714 $-5,380,677 TOTAL

104 2004 PLAN AND BUDGET SUMMARY HEALTH DEPARTMENT

EXECUTIVE SUMMARY

MISSION: To ensure that services are available to enhance the health of individuals and families, promote healthy neighborhoods, and safeguard the health of the Milwaukee community.

STRATEGIC Prevent and control communicable and chronic diseases in Milwaukee. ISSUES: Promote reproductive health, healthy child development, and school readiness in Milwaukee.

Improve the quality and safety of consumer products in Milwaukee.

Reduce illness and injury related to home environments in Milwaukee.

Promote healthy behaviors and access to health services for all Milwaukee residents.

INITIATIVES Reduce infant mortality by promoting pre-conception planning, early prenatal care, WIC en- FOR 2004: rollment, and focus newborn services on risks and behaviors associated with infant death.

Improve preparedness for bioterrorism and other public health emergencies, including vector- borne diseases like West Nile Virus, SARS, and Monkey Pox

Enhance asthma and add injury prevention to successful lead poisoning prevention strategies in the Home Environmental Health Program.

Complete the transition to hazard assessment and critical control point practices in consumer safety programs.

Implement a wireless field inspection system for improved client records and rapid communications with health professionals and the public consistent with new federal regulations.

Continue consolidation of clinic locations and operations for greater efficiency.

Increase public and private funding for lead hazard control in high risk housing to meet the goal of eradication of childhood lead poisoning by 2010.

Promote health insurance and other benefits that improve the overall well being of families and neighborhoods.

BACKGROUND

The Milwaukee Health Department has served resi- ters and one remote STD Clinic site. In 2003, the re- dents of the City of Milwaukee since 1867. Today, mote STD Clinic site moved into the Keenan Health the department focuses its efforts on public health Center building as part of a reorganization of clinic assessment, policy development and leadership, and operations. In 2004, the Tuberculosis Clinic will be assuring service availability and accessibility. The moved from Southside Health Center to Keenan Health Department formerly operated from six loca- Health Center. tions throughout the city, including five health cen-

2004 PLAN AND BUDGET SUMMARY 105 HEALTH DEPARTMENT

The Health Department’s 2004 budget reflects Figure 1 their ongoing efforts to improve its strategic planning driven outcomes. Five management Funding Source by Objective units focus on specific program outcome areas, including home environmental health, con- $12,000,000 sumer environmental health, healthy behaviors $10,000,000 and health care access, maternal and child health, and disease control and prevention. $8,000,000 These program areas are supported by the Health Department’s laboratory and business $6,000,000 sections. Departmental staff developed the $4,000,000 2004 initiatives by identifying the best practices to achieve community health goals rather than $2,000,000 simply providing more services. Partnerships with other public and private organizations $0 Disease Control Maternal and Home Consumer Healthy have become ever more critical for such plan- and Prevention Child Health Environmental Environmental Behaviors and includes Aids Health Health Healthcare ning. CDBG Access Operating Funding Grant Funding In 2004, the Health Department will continue to receive an increasing proportion of grant funding. to supplement its $13.2 million operating budget As seen in Figure 1, the Health Department expects with over $16.6 million in grant funding.

OBJECTIVE 1

To reduce illness and injury from communi- Outcome Indicators and Funding cable disease, pollution, and disasters in Milwaukee by reducing the incidence of 2002 2003 2004 gonorrhea infections per 100,000 population Experience* Budget Projection to less than 100 by 2010. Incidence of gonorrhea 759 600 750 infections per 100,000 OUTCOME HISTORY population. Funding by Source: Increasingly, sexually transmitted diseases Operating Funds $5,422,298 $5,347,082 $5,348,311 Grant and Reimbursable 768,534 1,130,855 1,397,200 have become the predominant form of com- Capital Budget 13,176 443,862 498,190 municable disease that the Health Depart- Special Purpose Accounts 248,529 314,200 0 ment works to prevent. In 2003, the depart- Total: $6,452,537 $7,235,999 $7,243,701 ment began tracking the incidence of gonor- *2002 Experience reflects a prior communicable disease objective that has rhea infections as their primary indicator of been revised. success in the area of disease control and prevention. In 2002, 759 gonorrhea infections the years to come. The 2004 budget allocates $7.2 were reported per 100,000 population. As shown in million to disease control and prevention. Figure 2, the rate has fluctuated over the past eight years and has shown an increase in recent years. In ACTIVITIES 2004, the department will strive to decrease the rate to 750 infections per 100,000 population. • Regional public health emergency preparedness and response Figure 3 shows the degree to which sexually trans- • Tuberculosis surveillance, prevention, and con- mitted infections overshadow other reportable dis- trol ease rates in the community. Combating these diseases will require community collaboration with the • Sexually transmitted disease surveillance, pre- department and a sustained and innovative effort in vention, and control

106 2004 PLAN AND BUDGET SUMMARY HEALTH DEPARTMENT

Figure 2 • HIV/AIDS prevention • Vector and water borne disease control Gonorrhea Infections per 100,000 Population • Communicable disease surveillance and control (SURVNET) 850 • Environmental property audits and as- 800 sessments 750 • Toxic materials planning and manage- 700

ment 650

• Outdoor air quality surveillance 600

PROGRAM CHANGES 550 500

Outbreak Preparedness: In 2004, the Health 450

Department will continue to improve public 400 health emergency preparedness and coordi- 1995 1996 1997 1998 1999 2000 2001 2002 nated response. The Health Department has already augmented its ability to respond to communicable disease outbreaks, bioter- Figure 3 rorism, and other emergencies (such as hazardous materials spills or heat waves) by in- Reported Cases of Disease in Milwaukee County tegrating medical, nursing, environmental, Relative Burden of Sexually Transmitted Diseases and epidemiologic staff within a single unit. 18,000 The staff within this unit is supplemented by 16,000 grant funded initiatives like the countywide 14,000 communicable disease tracking system, SURVNET, and Centers for Disease Control 12,000 and Prevention (CDC) Bioterrorism Program. 10,000 8,000 Number of Cases The department has also created a multi- 6,000 disciplinary response team that operates 24 4,000 hours a day for a more efficient response to 2,000 community emergencies demanding a field 0 response and public health risk assessment. 1995 1996 1997 1998 1999 2000 2001 2002

This team closely coordinates community re- Sexually Transmitted Diseases Other Diseases sponse with the Fire Department’s Hazmat and EMS Units, various local and federal law enforcement agencies, and the Milwaukee County mental specimen analysis; deployment of alert mes- Division of Emergency Management. saging and routine risk communication to the health care community, the media and general public Emerging Infectious Diseases: The Health Depart- through electronic networks. Many of these activities ment continues to face new challenges associated already coincide with current public health emer- with the identification, control, and prevention of gency preparedness for bioterrorism. During 2004, emerging infectious diseases like SARS and Monkey the Health Department will continue regional part- Pox. During 2003, the department performed exten- nerships with other local public health agencies to sive surveillance and prepared for responses to the strengthen capacity and enhance assets necessary to global SARS epidemic and a regional appearance and ensure public health initiatives underway including: outbreak of Monkey Pox. The department’s response review and assessment of early warning and detec- to both of these disease episodes included, but was tion surveillance systems; continuation of joint staff not limited to: rapid development of sentinel sur- training and exercises with other first responder veillance systems in the community; assurance of agencies; and formation of a departmental clinical local laboratory capacity for clinical and environ- response team.

2004 PLAN AND BUDGET SUMMARY 107 HEALTH DEPARTMENT

West Nile Virus: The department continues to con- public outreach, and mosquito control to reduce the duct surveillance for West Nile Virus within the city probability of the West Nile Virus outbreak in the as a result of initial detection of the virus in select community. bird species in 2001. Surveillance activities include collecting and tracking reports of dead birds made by Communicable Disease Reduction Initiative: In citizens, adult mosquito trapping and analysis, and 2004, the department will further strengthen a Com- collaborating with local hospitals and other health munity Development Block Grant (CDBG) funded care providers in reporting suspected cases of human program designed to reduce communicable disease infections. In 2003 the department targeted larvicide in a targeted neighborhood. The goal of this program application throughout the city for purposes of mos- is to provide a coordinated approach to combating quito control and limiting West Nile Virus transmis- sexually transmitted diseases, tuberculosis, and other sion to the community. City employees of the Health communicable disease in the community. The STD Department, Department of Public Works, and De- Clinic was moved into the Keenan Health Center in partment of City Development placed larvicide in the summer of 2003 and the Tuberculosis Clinic will catch basins and other select habitat throughout the be moved into the same facility in 2004. The co- summer and fall. The Health Department also location of these clinics and associated services will maintains a public hotline and web site to update provide increased accessibility for clients and will citizens as to surveillance activities and prevention enable the department to provide a more focused, measures. During 2004, the department anticipates neighborhood approach to communicable disease conducting similar levels and types of surveillance, education, identification, and prevention.

OBJECTIVE 2

To promote reproductive health, healthy child development, and school readiness in Outcome Indicators and Funding Milwaukee by reducing the ratio of African 2002 2003 2004 American infant mortality rate to White in- Experience* Budget Projection fant mortality rate to less than 1.3% by 2010. Percent difference in N/A 2.50 2.50 African American vs White OUTCOME HISTORY infant mortality rate.

The infant mortality rate (the number of chil- Funding by Source: dren who die before their first birthday out of Operating Funds $2,694,825 $2,907,529 $2,676,469 every 1,000 live births) is an important indi- Grant and Reimbursable 2,092,440 2,549,937 2,121,000 cator of a community’s overall social and eco- Capital Budget 22,503 241,602 202,306 nomic well being. When different parts of the Total: $4,809,768 $5,699,068 $4,999,775 city experience very different rates of infant *2002 Experience reflects a prior maternal and child health objective that has been revised. mortality, it indicates significant disparities in underlying health conditions. In Milwaukee, as well as nationally, the decline in the African The difference between the African American and American infant mortality and other adverse birth Non-Hispanic White infant mortality rates is the outcomes has failed to keep pace with that of Whites. major indicator of success in the Maternal Child In Milwaukee, the rate of infant death in Non-Whites Health Division. As Figure 4 illustrates, while the was 1.7 times that of Whites in 1968, but 2.8 times overall city infant mortality is on the decline, the dis- that of Whites in 2001. The disparity between Whites parity between White and Non-White infants re- and African Americans is even greater. In Milwau- mains wide. kee, the 2001 Non-Hispanic African American infant mortality was 17.7 per 1,000 live births versus a Non- The Health Department’s 2004 budget dedicates ap- Hispanic White rate of 4.9. proximately $5 million to promote maternal and child health, which includes over $2.1 million in state and federal grants.

108 2004 PLAN AND BUDGET SUMMARY HEALTH DEPARTMENT

ACTIVITIES Figure 4

• Prenatal and reproductive health • Care coordination Infant Mortality Rates Per 1,000 Births • Infant and preschool health 20 • Pregnancy testing and counseling 18 16 • Assessment and monitoring of vulnerable and chronically ill children 14 • WIC Nutrition Program 12 • Newborn screening for heritable disorders 10 • Sudden unexpected infant death services 8 • Refugee child health 6 4 • Fetal infant mortality review 2 • Vital statistics/epidemiology 0 • Health Check Screening Clinics 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 • Immunizations *2001 data is provisional City Totals White Non-White

PROGRAM CHANGES Health and Safety in Child Care Grant: In 2003, the Health Department received $497,000 from the Home Visit Program: In 2004, two vacant Public Health Resource Services Administration for con- Health Nurse positions in the Maternal and Child tinuation of child care health consultant services to 52 Health Division will be replaced by two Public child care centers enrolled in the project. Public Health Social Worker positions. These staff will join Health Nurses, Clinic Assistants, a Health Educator, the current team of Public Health Nurses, Clinic As- and an Environmental Hygienist provide health assistants, Health Educators, and Physicians who pro- sessments, health screenings, educational and envi- vide services to mothers and children. The Public ronmental assessments, counseling and referrals to Health Social Workers will assess, counsel, and refer children, parents and child care workers. This clients on any number of problems such as: inade- population was previously not being serviced by the quate housing; lack of health insurance; or domestic department. violence. The use of Social Workers will increase the capacity of the Public Health Nurses who are cur- Healthcare Outreach Coordinator: In 2004, a rently providing these services. Healthcare Outreach Coordinator position is created in the Maternal and Child Health Division. This po- Combined Service Locations: A new initiative in sition will work to assure that physicians, clinics, 2004 is the combination of public health nursing hospitals, managed care organizations, and other services with the Health Department’s Women In- service providers adopt recommendations to reduce fants and Children (WIC) Clinic services to provide a infant mortality and meet other public health goals. “one stop shopping” environment for clients. Coun- A recent outcome-based strategic planning session seling, pregnancy testing, medical assistance, out- identified a need to make health care providers more reach, and immunizations are just a few of the many active partners in Health Department programs. This services provided while clients are being seen for position will be filled by an experienced public health WIC. This change allows clients to receive Public nurse that will provide professional to professional Health Nurse services while waiting for part of the contact with the goal of improving the preventative WIC appointment. Services provided in the “one effectiveness of the hundreds of millions of dollars stop” visit will target the reduction of infant mortal- spent on health care in our community each year. ity by education and counseling on such topics as safe sleep environment, early signs of labor, and safety for children.

2004 PLAN AND BUDGET SUMMARY 109 HEALTH DEPARTMENT

OBJECTIVE 3 Outcome Indicators and Funding

To reduce illness and injury related to the 2002 2003 2004 home environment in Milwaukee by reduc- Experience* Budget Projection ing the percent of all children aged 0-5 years Percent of children aged 0-5 14.0% 14.0% 13.0% with blood lead levels exceeding 9 mcg/dL to tested with blood lead levels exceeding 9 mcg/dL. 0% by 2010.

OUTCOME HISTORY Funding by Source: Operating Funds $1,166,471 $1,121,489 $1,155,368 Grant and Reimbursable 2,907,643 1,997,983 4,080,920 The Health Department has stepped up its fo- Capital Budget 7,501 82,856 134,876 cus on health issues related to the home envi- Total: $4,081,615 $3,202,328 $5,371,164 ronment, primarily lead poisoning, asthma, * 2002 Experience reflects a prior environmental quality objective that is no and unintentional injuries. Recognized as one longer tracked. of the most successful lead poisoning control programs in the United States, the Health De- Figure 5 partment’s Lead Program has significantly reduced the rate of lead poisoning among Mil- Percent of Milwaukee Children Tested with Blood waukee children. As Figure 5 shows, the per- Lead Levels Exceeding 9 mcg/dL cent of children tested aged 0-5 with high blood lead levels has declined from about 40% 45% in 1995 to 14% in 2002. The program’s success 40% is derived in part from focusing on cost effec- 35% tive abatement of hazardous homes before the 30% children are poisoned. 25%

20% The 2004 budget provides $5.4 million in funding for comprehensive home environ- 15% mental health activities including $4.1 million 10% in funding from federal and state grant pro- 5% grams. 0% 1995 1996 1997 1998 1999 2000 2001 2002 ACTIVITIES

• Lead poisoning prevention and treatment Lead Hazard Abatement: The Health Department’s • Asthma control Lead Program is recognized as one of the most comprehensive control efforts in the United States, com- • Unintentional injury prevention bining screening and case management with innova- • Clinical and environmental lead laboratory tive community mobilization, public policy advo- PROGRAM CHANGES cacy, and environmental abatement. The refinement of low cost abatement techniques and responsiveness Asthma Grants: The Health Department will add to concerns of property owners has increased local two new positions for the Fight Asthma Milwaukee demand for voluntary and partially subsidized Allies Grant. Asthma related services include case abatement of low income rental properties. The coordination and case management of families im- Health Department receives the maximum available pacted by asthma, collection, and correlation of out- funding from the U.S. Department of Housing and door air quality measurements, and research to de- Urban Development for lead abatement. CDBG termine the impact of home allergens and the cost funding of $550,000 provided to supplement the de- effectiveness of reducing these environmental trig- partment’s lead efforts in the 2003 budget will be re- gers. duced to $500,000 in 2004. Additionally, the Lead Paint Lawsuit, filed by the city against former manu- factures of lead based household paints and dis- missed in 2003, will be appealed.

110 2004 PLAN AND BUDGET SUMMARY HEALTH DEPARTMENT

OBJECTIVE 4 Outcome Indicators and Funding

To improve the quality and safety of con- 2002 2003 2004 sumer products and services in Milwaukee Experience Budget Projection by reducing the percent of establishments Percent of food 58.0% 45.0% 55.0% with critical foodborne illness violations on inspections with critical the initial inspection to 30% by 2010. foodborne illness risk factors.

OUTCOME HISTORY Funding by Source: Operating Funds $2,708,978 $2,982,641 $2,559,930 The Health Department’s success on this ob- Capital Budget 7,501 240,109 67,438 jective is measured by the percent of food es- Total: $2,716,479 $3,222,750 $2,627,368 tablishments with critical violations on the initial inspection. In 2002, 58% of establish- Figure 6 ments had at least one critical violation, an increase from 45% in the prior year. The Food Borne Illness Investigations Health Department continues to focus on the with Confirmed Cases of Illness* Hazard Analysis and Critical Control Point 80 68 (HACCP) techniques. These techniques allow 70 64 the Food Inspectors to identify hazards and 60 60 56 assess risks posed to a food ingredient or food 50 product in relation to food preparation or 44 45 44 39 processing and determine the critical control 40 37 38 points required to prevent or control these 32 hazards. As shown in Figure 6, the depart- 30 ment investigated 44 possible foodborne out- 20 breaks that involved confirmed cases of ill- 10 ness in 2002. 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 In the 2004 budget, funding of $2.6 million is * Confirmed through epidemiological testing. dedicated toward improving the quality and safety of health related consumer products and serv- connected office for Food Inspectors to perform rou- ices. tine data entry.

ACTIVITIES This system will eliminate many return trips to the office and allow the inspector to remain in the field • Food safety regulation and education longer to perform more inspections on a daily basis. The department is currently exploring the best way to • Weights and measures make more food inspection information available to • Sales ordinance investigations the public through its web site, once the new database • Fire inspections (in Health Department permitted and mobile inspection system are fully operational. facilities) • Convenience store security inspections Reduction of Health Inspection Staff: The 2004 • Tattoo and piercing establishment licensing budget eliminates one Health Inspector and one Office Assistant III position in the Consumer Environmental PROGRAM CHANGES Health Division. Inspector efficiencies are expected from a new hazard analysis approach that utilizes the Mobile Consumer Environmental Health Inspec- identification, correction and/or control of the Centers tion System: In 2003, the Health Department devel- for Disease Control (CDC) recognized foodborne ill- oped a new inspection database system that will ness risk factors. Under this system a reduction in the permit wireless portable access and data entry from issuance of non-CDC orders is expected. In addition, a the field. In 2004, the inspection system will use new enforcement policy in the form of inspection and wireless PC tablet technology to create a mobile reinspection fees will address repeat violators and those who fail to comply in a timely manner.

2004 PLAN AND BUDGET SUMMARY 111 HEALTH DEPARTMENT

OBJECTIVE 5

To promote healthy behaviors and access to Outcome Indicators and Funding health services in Milwaukee by reducing the percent of youth in grades 9-12 reporting to- 2002 2003 2004 bacco use in the past 30 days to 16% by 2010. Experience* Budget Projection Percent of youth grades 9- N/A 19.0% 19.0% OUTCOME HISTORY 12 using tobacco products in the past 30 days.

Lifelong habits learned in youth contribute to Funding by Source: wellness, or alternately to disease, disability, Operating Funds $1,437,393 $1,456,171 $1,461,460 early death, and high health care costs. The Grant and Reimbursable 6,771,628 9,726,049 9,286,200 2004 budget includes $11.1 million in funding Capital Budget 20,678 121,271 337,190 to promote healthy behaviors and assure ac- Total: $8,229,699 $11,303,491 $11,084,850 cess to prevention oriented health care to im- *2002 Experience reflects a prior adult health objective that is no longer tracked. prove the health and economic vitality of our city. Of this amount, $9.3 million comes from grant funds. people who smoke will target the department’s 2010 goal of reducing the percent of high school smokers. Rising rates of obesity and diabetes are becoming important public health concerns emphasizing the ACTIVITIES importance of exercise and nutrition. The Health Department contains the only non-WIC local Public • Health care access Health Nutritionist in Wisconsin to deal with these • Tobacco control and prevention issues. • Nutrition Tobacco the Number One Killer: Preventing people • Municipal Health Services Program from starting the use of tobacco and encouraging cur- • Well Women’s Program rent smokers to quit has been a program focus in the • Breast and cervical cancer prevention and testing department since 1997. • Domestic violence and sexual assault prevention • Mental health in elementary students and ado- The department is the fiscal agent for the Milwaukee lescents Tobacco Coalition, which engages over 20 community • Teen pregnancy prevention organizations in the implementation of outcome based • strategies to reduce and eliminate tobacco use in our Intentional injury prevention community. In 2004, the Health Department seeks to • Responsible sexual behavior for adolescents reduce the illegal sale of tobacco products to minors • Adolescent school health and depression through education, inspections for retailer compliance screening with state and local statues, and enforcement. In ad- • Employee Assistance Program dition, preventing youth purchase of tobacco products • Cardiovascular risk reduction and its subsequent lifelong addiction has been en- • Vulnerable and chronically ill adults hanced through community partnerships and collaborative efforts to prevent licensed Milwaukee tobacco PROGRAM CHANGES retailers from illegally selling to minors. Mental Health/Substance Abuse: The Healthy Be- The department’s focus on education, surveillance, haviors and Healthcare Access Division (HBHA), enforcement, cessation, and community based best received a three year ($500,000 annually) federal practice is in direct alignment with the CDC’s Best grant to provide mental health and substance abuse Practice recommendation to reduce the morbidity and care to a targeted population of women and children. mortality associated with tobacco use. This compre- Health services will also be provided to these women hensive approach to reduce the percentage of young and their children.

112 2004 PLAN AND BUDGET SUMMARY HEALTH DEPARTMENT

Public/Private Partnership: In 2004, The Health De- thousands of families lost their connection with low partment will partner with META House, Inc. to in- income health insurance programs during early wel- crease its capacity to serve primarily African Ameri- fare reform efforts. The Health Department has in- can women and address the many health disparities tensified efforts to help families find insurance and experienced by this population. The program ad- primary health care through its Medical Assistance dresses substance abuse and provides a treatment Outreach and MHSP Grants, facilitating the program while providing health services for both BadgerCare Coordinating Network, and serving the women and children. This program will also pro- Milwaukee County Health Care Policy Taskforce. mote healthy behaviors and health care access and Over 40,000 Milwaukee County residents have been provide for education, prevention, and intervention enrolled in Medicaid and BadgerCare since the services. The results of this project will be reported BadgerCare Coordinating Network began its work in quarterly with an outcomes report completed annu- 1999. ally. In 2003, the Health Department experienced 3,000 Promoting Health Insurance Enrollment: Lack of families being referred and 1,300 becoming eligible health insurance causes problems for the individual for a variety of health care programs. In 2004, refer- as well as the organizations providing preventive rals are expected to increase to 3,500 and 1,600, re- care and treatment. Between 1996 and 1998, spectively.

OTHER ACTIVITIES AND CHANGES

Clinic Operations Reorganization: The department In 2004, one vacant Health Project Coordinator (0.5 has taken advantage of its expired STD Clinic lease to FTE) is eliminated reducing salaries by $14,598. This reorganize its clinic operations. In 2003, the STD position has remained vacant since the 2003 creation of Clinic moved into the Keenan Health Center to better the Tobacco Control Project Manager (1.0 FTE). The serve clients in need. The WIC and walk-in clinics at Tobacco Control Project Manager will continue to Keenan continue to be staffed by the district nurses carry out the duties of this vacant position. with service levels remaining unchanged. In 2004, the Tuberculosis Clinic will also be moved from the Due to the increasing difficulty in securing funding Southside Health Center to Keenan, in order to pro- from Medicaid for services provided by the Health vide increased coordination between these important Department, one vacant Public Health Nurse position communicable disease control units. The WIC Clinic in the Case Coordination Unit will be eliminated in at Johnston Health Center will then be moved into 2004. Funding received by Medicaid has not been suf- Southside Health Center so that all three WIC sites ficient to warrant three positions in this unit. will be co-located with the Family Health Walk-In Clinics. Additional position changes include replacing the Chief Chemist position with an Administrative Lab Other Position Changes: As part of a comprehensive Manager position, replacing one Graphics Coordinator effort to streamline city government, funding for sev- position with one Graphics Designer II position. Also, eral other positions has been eliminated. In 2004, two one of two Delivery Driver positions is eliminated. vacant Pubic Health Nurse positions providing school With one Delivery Driver remaining, an Auxiliary De- based nursing services are eliminated for salary re- livery Driver position is created to allow staff to still ductions of $61,387. These nurses provided contracted perform deliveries when the regular Delivery Driver is services to schools that desired services above what on leave or vacation. was provided by the Health Department through its general service agreement with Milwaukee Public Reduction to Information Technology Special Schools. These schools have indicated that they do not Fund: In 2004, the Health Department is reducing its require additional services. Information Technology Special Fund by $100,000 to $66,000. This reduction is made possible by a technology grant and represents a one time reduction in 2004.

2004 PLAN AND BUDGET SUMMARY 113 HEALTH DEPARTMENT

CAPITAL PROJECTS

During 2002, the Health Department performed a accommodation improvements, such as redesigned comprehensive assessment of the capital needs for its restrooms. five health center buildings. Growing concern over the need for improvements related to the Americans Mechanical Systems Maintenance Projects: In 2004, with Disabilities Act (ADA) prompted increased $375,000 in funding is provided for this account. In- funding for interior and exterior projects related to cluded in this amount is $175,000 for removal of the ADA requirements. This assessment resulted in in- Coggs and Southside Health Centers boilers and re- creased capital funding in 2003 of approximately $1 placement with smaller, more efficient models. In ad- million from previous years’ funding levels of ap- dition, $25,000 is provided for elevator repairs at sev- proximately $100,000. The 2004 budget continues to eral of the Health Centers. provide adequate funding for maintenance and any necessary redesign of Health Department facilities. Keenan Renovation for the Tuberculosis Clinic: Moving of the Tuberculosis Clinic from the Southside Exterior Building Maintenance Projects: In 2004, Health Center to Keenan Health Center is funded in $315,000 is provided for roof repairs at Johnston, 2004 at $300,000. Initially, the Tuberculosis Clinic was Northwest, and Keenan Health Centers. This fund- intended to be located on the same floor as the newly ing also provides for tuck pointing and exterior ADA relocated STD Clinic at the Keenan Health Center. accommodations, such as access ramps and doors. When relocation of the STD Clinic was completed in the summer of 2003, it became evident that additional Interior Building Maintenance Projects: In 2004 space would be needed for the Tuberculosis Clinic. $250,00 is budgeted for ceiling improvements at the Funding in 2004 will allow for the redesign of the Southside Health Center, as well as various ADA basement floor at Keenan Health Center to accommodate the Tuberculosis Clinic.

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 234.10 192.93 185.42 -7.51 FTEs - Other 96.27 128.12 127.53 -0.59 Total Positions Authorized 377 367 359 -8 DLH - Operations and Maintenance 319,932 347,274 333,756 -13,518 DLH - Other Funds 274,736 230,616 229,554 -1,062

EXPENDITURES Salaries and Wages $8,395,649 $8,630,612 $8,318,975 $-311,637 Fringe Benefits 3,126,298 3,193,326 3,078,020 -115,306 Operating Expenditures 1,801,047 1,799,174 1,717,743 -81,431 Equipment 4,143 25,800 20,800 -5,000 Special Funds 102,828 166,000 66,000 -100,000 TOTAL $13,429,965 $13,814,912 $13,201,538 $-613,374

REVENUES Charges for Services $876,999 $576,200 $579,000 $2,800 Licenses and Permits 1,618,651 1,674,800 1,579,200 -95,600 TOTAL $2,495,650 $2,251,000 $2,158,200 $-92,800

CAPITAL PROJECTS - Includes $1,240,000 for the following projects: a. Mechanical Systems Maintenance Program - Various Health Department Buildings - $375,000 b. Exterior Building Maintenance Program - Various Health Department Buildings - $315,000 c. Interior Building Maintenance Program - Various Health Department Buildings - $250,000 d. Keenan Renovation for Tuberculosis Clinic - $300,000

114 2004 PLAN AND BUDGET SUMMARY HEALTH DEPARTMENT

ORGANIZATION CHART

Commissioner

Home Environmental Healthy Behaviors and Health Healthcare Access

Disease Control Consumer Maternal and Child Health and Prevention Environmental Health

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-32,055 Office Assistant IV

-1 -1.00 $-47,604 Administrative Specialist

1 1.00 $42,427 Office Supervisor II Revised Business Section staffing -1 -1.00 $-33,379 Delivery Driver levels. 1 1.00 $30,890 Accounting Assistant II

-1 -1.00 $-54,086 Graphics Coordinator

1 1.00 $33,710 Graphic Designer II

1 1.00 $44,862 Microbiologist III Increased Bioterrorism Grant funding. 1 1.00 $44,862 LIS/QA Technical Specialist

2 2.00 $76,000 Public Health Social Worker District Nursing assignment -2 -2.00 $-76,733 Public Health Nurse adjustment to allow for Social Work Services. -1 -1.00 Office Assistant II

0.20 Public Health Nurse FTE reporting correction.

-1 -1.00 $-38,367 Public Health Nurse Reduction in Medicaid case coordination.

-1 -1.00 $-31,360 Office Assistant II Reclassification of positions. 1 1.00 $34,305 Program Assistant I

2004 PLAN AND BUDGET SUMMARY 115 HEALTH DEPARTMENT

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

1 1.00 $38,364 Health Project Coordinator New Racial and Ethnic Disparities 1 1.00 $47,007 Public Health Nurse in Immunizations Grant. 1 0.50 $11,436 Office Assistant II (0.5 FTE)

0.25 -0.25 $16,374 $-16,374 Public Health Nurse Supervisor Adjustment for reduced Congenital 0.40 -0.40 $12,184 $-12,184 Office Assistant II Disorders Grant funding. -0.15 0.15 $-7,360 $7,360 Public Health Nurse

-0.50 0.50 $-15,293 $15,293 Clinic Assistant Early Childcare Grant.

-0.50 0.50 $-14,666 $14,666 Office Assistant II Change in CDBG funding.

-1 -0.50 $-14,598 Health Project Coordinator (0.5 FTE) Elimination of Tobacco Control Program.

-2 -1.60 $-61,387 Public Health Nurse (0.8 FTE) Reduction in School Based Special Services.

-1 -0.50 $-14,666 Office Assistant II (0.5 FTE) Reduction in Preventive Health Grant.

-2 -2.00 $-65,993 X-Ray Technician III Reduction in Milwaukee Breast Cancer Awareness Grant.

-0.13 0.13 $-5,000 $5,000 Health Access Interpreter Increased Medical Assistance Program funding. 1 0.50 0.50 $13,648 $13,648 Office Assistant II

-1 -1.00 $-31,360 Office Assistant III New Food Inspection Handheld Technology. -1 -1.00 $-36,755 Environmental Health Specialist II

2 2.00 $81,535 Environmental Hygienist Urban Toxins and Emergency Preparedness Grant.

-1 -1.00 $-28,348 Office Assistant III Intervention to Prevent the Spread of AIDS Grant ends.

-1 -1.00 $-29,332 Office Assistant II SURVNet Grant reclassification. 1 1.00 $31,360 Office Assistant III

-1 -1.00 $-38,367 Public Health Nurse Childhood Lead Poisoning Prevention Grant staffing change. 1 1.00 $35,635 Program Assistant II

-1 -1.00 $-29,316 Public Health Aide Reduction in Childhood Lead Detection Program.

116 2004 PLAN AND BUDGET SUMMARY HEALTH DEPARTMENT

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-41,182 Lead Hazard Prevention Manager

-1 -1.00 $-34,735 Lead Project Assistant Lead Pilot Project Grant is -1 -1.00 $-23,345 Office Assistant II complete. -2 -2.00 $-75,876 Lead Risk Assessor II

-1 -1.00 $-38,371 Chemist II

0.50 $16,715 Public Health Aide Increased funding for Lead Hazard Reduction Grant.

-1 -1.00 $-44,302 Lead Project Coordinator Pilot Ordinance Evaluation Grant is completed. -1 -1.00 $-28,322 Public Health Aide

1 1.00 $45,678 Project Coordinator Health Homes Demonstration 1 1.00 $36,755 Environmental Health Specialist Project. 1 1.00 $38,367 Public Health Nurse

-1 -1.00 $-34,430 Lead Risk Assessor II Reduced CDBG Lead Grant funding.

1 1.00 $38,364 Health Project Coordinator Fight Asthma Milwaukee Allies Grant. 1 1.00 $24,928 Office Assistant II

1 1.00 $46,785 Administrative Lab Manager

-1 -1.00 $-29,332 Office Assistant II Revised Laboratory staffing. -1 -1.00 $-90,108 Chief Chemist

0.22 -0.22 $10,000 $-10,000 Chemist II

1 Delivery Driver (Aux.) Added for unexpected delivery Driver needs.

1 1.00 $46,785 Healthcare Outreach Coordinator Added to increase coordination improvements to private health care delivery to infants and their families.

-0.70 $-96,826 PCA Increase Adjustment to reflect miscellaneous experience.

-8 -7.51 -0.59 $-356,106 $29,637 TOTAL

2004 PLAN AND BUDGET SUMMARY 117 LIBRARY

EXECUTIVE SUMMARY

MISSION: The Milwaukee Public Library is every person’s gateway to an expanding world of information. Providing the best in library service, the library guides Milwaukee citizens in their pursuit of knowledge, enjoyment, and lifelong learning ultimately enriching individual lives and our community as a whole.

STRATEGIC Provide collections, services, and programs to enhance the longterm economic well being of ISSUES: our community and meet the informational needs of a diverse population.

Provide Milwaukee citizens with a competitive advantage through technology.

Assure that all Milwaukee citizens have access to current and future forms of information.

INITIATIVES Improve the Milwaukee Public Library’s presence in the community through partnerships, FOR 2004: collaboration and outreach efforts, and programs.

Increase the use of the Milwaukee Public Library through remote web access.

Work with the Milwaukee Public Library Foundation to increase corporate and individual contribution levels.

Renegotiate contracts with the Milwaukee County Federated Library System.

Continue initiatives to increase the number and use of library cards.

Provide computer training for the public at all libraries and train staff in computer technology and customer service.

Increase public awareness of reciprocal borrowing issues by education, collection enhancement, and neighborhood facility renovations.

Work with Milwaukee Public Schools to create partnerships between neighborhood library branches and neighborhood schools.

Create a long range plan for system facilities and capital projects with direction from the Li- brary Board.

BACKGROUND

The Milwaukee Public Library System, the largest serves as the resource library for MCFLS. The Li- public library system in the State of Wisconsin, con- brary also serves as the administrator and headquar- sists of the Central Library and 12 neighborhood ters for the Wisconsin Regional Library for the Blind libraries located throughout the city. The entire and Physically Handicapped. system is a member in the Milwaukee County Fed- erated Library System (MCFLS) which consists of 26 The Library operates a computer network system libraries in Milwaukee County that have an agree- that gives patrons access to numerous databases ment to serve one another’s patrons through a sys- through CD-ROM and the Internet. The Library tem of reciprocal borrowing. With the largest refer- currently offers a collection of over 2.5 million vol- ence collection in the system, the Central Library umes, as well as over 1 million government docu-

118 2004 PLAN AND BUDGET SUMMARY LIBRARY ments, 183,000 maps, 9,700 periodical subscriptions, In addition, each neighborhood library offers bal- 73,000 audio and visual materials, and numerous anced collections and programs of particular interest archival collections. Library patrons have 24 hour to the residents living in the library’s neighborhood. access to library services through the Library’s web Examples include job and career centers, adult liter- site and access to the resources of every library in acy collections, business development resources, and the state through inter-library loan services. cultural resources. The Library’s 2004 budget totals $21.2 million. In addition, the Library will receive $1.6 million in grant funding and $2 million in capital funding.

OBJECTIVE 1

Respond to the informational needs of the Outcome Indicators and Funding city’s diverse population by increasing the number of library cardholders, hours of 2002 2003 2004 computer use, and visits per capita. Experience Budget Projection Library cardholders per 0.61 0.57 0.58 OUTCOME HISTORY capita. Hours of computer use. 598,845 625,000 625,000 One of the Milwaukee Public Library’s (MPL) Visits per capita. 4.43 4.45 4.45 long range goals is to be connected to every home in the city. To that end, the Library Funding by Source: recently started tracking the number of li- Operating Funds $23,245,658 $21,727,872 $21,191,333 brary cardholders per capita. In 2002, a rec- Grant and Reimbursable 1,123,821 1,691,941 1,579,731 ord high 61% of Milwaukee residents were Capital Budget 3,133,743 990,000 2,000,000 registered for a library card. The Library will Total: $27,503,222 $24,409,813 $24,771,064 continue to work to increase this measure through various marketing activities de- Figure 1 signed to bring more patrons into the libraries. The number of visits per capita has also been steadily increasing since 1996 (see Fig- Visits Per Capita 1996-2002 ure 1). In 2002, patron count at all Milwau- 4.5 kee Public Library facilities totaled 2,645,559 4.4 or a 9% increase from 1996. Much of this 4.3 increase can be attributed to improved tech- 4.2 nology and Internet access at the branches. 4.1

4.0 The use of computer technology continues to expand. In 2002, the public used 598,845 3.9 hours of computer time, over three times as 3.8 much as in 1996 (see Figure 2). Many eco- 3.7 nomically disadvantaged residents are not 3.6 financially capable of purchasing computers 3.5 for their home. Computer and Internet ac- 3.4 cess in areas with high poverty rates is rising 1996 1997 1998 1999 2000 2001 2002 rapidly due to the informational needs of residents in those areas. The Milwaukee Public Library is committed to targeting communi- ACTIVITIES ties with 10% or more of its service population below the poverty rate for improved services and re- • Wisconsin Regional Library for the Blind and sources. Several initiatives have been developed Physically Handicapped over the past few years to further the Library’s prog- • Ready reference ress toward this goal. • Circulation services

2004 PLAN AND BUDGET SUMMARY 119 LIBRARY

• Collection development Figure 2 • Bookmobile and materials delivery • Community outreach • Information technology services Hours of Computer Use 1996-2002 • Milwaukee County Federated Library 700,000 598,845 System Resource Library 558,870 600,000 • Adult literacy 451,776 500,000 • Tutoring 404,924 405,197

• Computer training 400,000 • Children’s programs 300,000 • Young adult programs 168,584 190,803 200,000 Books-2-Go Grant: In 2000, the Library began a new grant program using federal Li- 100,000 brary Services and Technology Act funding 0 that provides outreach to Milwaukee pre- 1996 1997 1998 1999 2000 2001 2002 schoolers living in poverty and cared for in daycare settings. By training childcare providers, the Library is helping to develop pre- resources in the city’s Neighborhood Strategic Plan- reading skills in young children, a key predictor of ning Areas. This enhanced program provides direct later academic success. In 2003, MPL was able to access to educational technology for children and garner funding for a new Books2Go Program, Libros adults in disadvantaged areas. A marked increase in para Llevar, which focuses on Spanish speaking bookmobile usage by city residents since its incep- families and childcare providers. tion is evidence of the program’s success. The 2004 budget funds this service with Community Devel- Summer Reading Program: Milwaukee Public Li- opment Block Grant funding of $257,000. brary’s Summer Reading Program reached an all time high participation in the summer of 2003, with COMPASS Guide: In its second year of operation, more than 15,000 children and teens signing up and the COMPASS Guide project helps low income and reading books. The Library continues to pursue minority teenagers explore options and make plans initiatives that increase the number of Milwaukee for after graduation. COMPASS Guide is a web site area youth signing up in its reading programs. that includes Milwaukee’s first searchable database of local scholarship information, in addition to gen- Hewlett Packard Library Technology Access Proj- eral information on career, college, and apprentice- ect: In 2003, MPL was one of four public libraries in ship choices. The Library hosts one-on-one training the United States that was selected to pilot a new and professional academic counseling at targeted program sponsored by Hewlett Packard aimed at sites, and hands-on training to classes during library addressing the technology needs of people with dis- visits. A volunteer teen advisory board helps pro- abilities. Hewlett Packard provided $16,000 worth mote the project to the community and their peers. of accessible computer workstations that are now Operating in close partnership with University of available at the Central Library for any person with Wisconsin-Milwaukee and Milwaukee Public special needs who wishes to benefit from the infor- Schools, this project is funded through a grant from mational resources offered at the library. The Li- the Greater Milwaukee Foundation. brary successfully implemented the project with the help of the Regional Library of the Blind and Physi- Center Street: The 2003 budget provided Commu- cally Handicapped, Volunteer Services for the nity Development Block Grant funding to enhance Handicapped, the Badger Association of the Blind the Center Street Library branch into a new Com- and Visually Impaired and Independence First. munity Outreach Technology Center. The program allowed the Library to add 32 new computers and Bookmobile Links Communities and Technology: provide an increase in the number of free computer A new Bookmobile Program initiated in 2002, pro- training workshops for library patrons. Because of vides public access to the Internet and computer the new program, the number of patrons visiting

120 2004 PLAN AND BUDGET SUMMARY LIBRARY

Center Street increased 18.5% by the end of October PROGRAM CHANGES 2003 and 31.6% over October 2002 statistics. Center Street also participates in the library-wide Teach Interlibrary Loan Services Grant: The State of Wis- Grant, which provides classes in word processing, consin Department of Public Instruction has pro- spreadsheets, and the Internet. These classes are vided the Interlibrary Services Grant to fund staff offered free-of-cost to the community. and equipment to receive, retrieve, and distribute requests from residents statewide for Milwaukee Many of the inner city library branches have lines for Public Library materials since 1968. Under the pro- computer use at various times of the day and experi- visions of the grant, Milwaukee area users have also ence much higher patron counts than circulation been able to obtain materials from other libraries in counts. This indicates that visiting patrons have the state if they are unavailable in Milwaukee area increased their use of computer resources for access library collections. At of the end of 2003, the $94,000 to information, in addition to checking out materials. grant program has been eliminated from the state This program allows for expanded access to infor- budget. This will result in the reduction of two posi- mation resources as well as computer training pro- tions, a Library Services Assistant and a Library grams for interested patrons. In addition, the Li- Circulation brary is exploring coordination with Milwaukee Assistant I in the 2004 budget. Public Schools to increase student technology use. Combining Central Library Subject Areas: Begin- The program has also attracted strong public interest ning in 2004, the subject areas of Humanities and Art and demonstrates potential for developing partner- and Music will be administratively combined. This ships with local organizations, businesses, and change will eliminate one management Librarian V schools. The branch has already established partner- and one Librarian IV for savings of approximately ships with several organizations, schools, and day- $117,000. One management Librarian V will oversee care centers such as the Neighborhood Parenting both areas. Group, the Certicare Daycare, the Next Door Foun- dation, the Starms Early Childhood, the Clarke Other Position Changes: An Office Assistant II has Street School, the Khamit Institute, and the Phyllis been eliminated from the Administrative Support Wheatley School. To further enhance the technology Section and a Library Technician II has been elimi- program, the Library will explore more of these nated from the Technical Service Pool. The duties of partnership possibilities in 2004. In 2004, $492,431 in these positions will be absorbed by other Library CDBG entitlement funds and $50,000 in reprogram- administrative support positions. ming funds will be used to fund this project.

CAPITAL PROJECTS

Maintaining and updating a system of 13 library Closed Circuit Camera Security System: In 2004, buildings that are heavily used by the public is an the Library plans to replace its Closed Circuit Cam- ongoing task. The 2004 capital budget includes $2 era Security System at all 13 locations. The current million in funding for the following Milwaukee Pub- system is no longer supported for maintenance and lic Library capital projects: spare parts. Replacing this system is essential for the safety of Library staff and patrons, as well as secu- Central Library Improvements Fund: The 2004 rity of library collections. The project is budgeted at capital budget includes $625,000 for various projects $200,000 for Central Library and $175,000 for the to improve Central Library. Projects planned for neighborhood branches. 2004 include painting the Humanities Room for $75,000, exterior building maintenance anticipated to Other Library Improvements: In the 2004 capital cost about $50,000, and removal and replacement of budget, $1 million has been earmarked for either the the HVAC equipment located above the Rare Books remodeling of one of the northside library branches Room. Recent leaks prompted this $500,000 project, or for the initial phase of a consolidated library which will ensure the valuable assets in this room branch on the northside. A special subcommittee of will be preserved for generations to come. the Library Board has been set up to determine the best long range option for this funding.

2004 PLAN AND BUDGET SUMMARY 121 LIBRARY

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 316.09 322.92 328.60 5.68 FTEs - Other 18.96 35.56 28.24 -7.32 Total Positions Authorized 449 445 409 -36 DLH - Operations and Maintenance 568,969 581,256 591,480 10,224 DLH - Other Funds 34,124 64,008 50,832 -13,176

EXPENDITURES Salaries and Wages $12,032,672 $11,756,591 $11,748,754 $-7,837 Fringe Benefits 4,454,712 4,349,938 4,347,039 -2,899 Operating Expenditures 1,956,292 2,121,904 2,080,434 -41,470 Equipment 2,475,835 2,369,439 2,214,997 -154,442 Special Funds 2,326,147 1,130,000 800,109 -329,891 TOTAL $23,245,658 $21,727,872 $21,191,333 $-536,539

REVENUES Charges for Services $2,307,583 $2,259,000 $2,324,400 $65,400 TOTAL $2,307,583 $2,259,000 $2,324,400 $65,400

CAPITAL PROJECTS - Includes $2,000,000 for the following projects: a. Central Library Improvements Fund - $825,000 b. Neighborhood Library Improvements Fund - $1,175,000

ORGANIZATION CHART

Mayor Library Board City Librarian Deputy City Librarian

Neighborhood Library and Administrative Services Central Library Services Extension Services

122 2004 PLAN AND BUDGET SUMMARY LIBRARY

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason Administration Division -1 -1.00 $-28,953 Office Assistant II Administrative services reduction.

-1 -1.00 $-25,211 Library Technician II Reduction in technical processing.

-30 -4.76 $-40,000 Computer Service Aide (0.16) State funding for TEACH grant eliminated.

1 1.00 $33,492 Library Circulation Assistant I DC-48 Contract Administrator position transferred from DPW.

Neighborhood Division -7 -7.00 $-221,383 Library Services Assistant Position retitled. 7 7.00 $221,383 Library Reference Assistant

-0.50 $-20,781 $-20,781 Librarian II Changes in bookmobile staffing. 0.50 $-21,572 $21,572 Librarian III

-3 -1.68 $-22,570 Computer Service Aide (0.56)

2 2.00 $54,036 Library Circulation Assistant I Center Street Community Outreach 2 1.12 $15,840 Library Circulation Aide (0.56) and Technology Center staffing changes. -1 -1.00 $-31,116 Library Services Assistant

1 1.00 $31,116 Library Reference Assistant

-1 -1.00 $-10,577 Library Circulation Assistant I Reduction in state funding for the Regional Library for the Blind and -1 -1.00 $-16,721 Librarian II Physically Handicapped.

Central Library Division -1 -1.00 $-65,771 Librarian V Combining subject areas of Art and Music with Humanities. -1 -1.00 $-50,982 Librarian IV

-1 -1.00 $-34,183 Library Services Assistant Loss of state Interlibrary Services Grant funding. -1 -1.00 $-27,873 Library Circulation Assistant I

-1.00 -2.00 Library Services Assistant Position retitled. 1.00 2.00 Library Reference Assistant

8.68 $288,387 PCA Difference Reduction in personnel cost adjustment. $36,211 Miscellaneous Adjustment

-36 5.68 -7.32 $108,609 $-45,046 TOTAL

2004 PLAN AND BUDGET SUMMARY 123 MAYOR’S OFFICE

EXECUTIVE SUMMARY

MISSION: To enable the citizens of Milwaukee to prosper and achieve a high quality of life and to allow the city to serve as the economic, social, and cultural hub of the metropolitan area by effectively managing city government, providing community leadership, and advancing Milwau- kee’s interests with other governments.

STRATEGIC Ensure that the services the city delivers add value to the lives of Milwaukee residents. ISSUES: Maintain and improve citizen satisfaction with city services, especially safety.

Maintain equitable and effective funding relationships with other levels of government.

INITIATIVES Provide leadership and support to city departments in pursuing the city’s goals and objectives FOR 2004: as outlined in the strategic plan and budget.

BACKGROUND

The Mayor of Milwaukee is elected to a four year The Mayor’s vision for the city helps shape and is term and acts as the city’s Chief Executive Officer incorporated in the city’s strategic plan. The plan in and representative of the citizens of the city. In this turn is the guide or direction for the activities of the capacity, the Mayor’s Office provides a leadership rest of the administration. The city’s strategic vision role in establishing priorities, coordinating the im- focuses on allowing private markets to work and plementation of programs, and when necessary, give residents the opportunity to succeed in those providing crisis management. The managers of all markets (either as entrepreneurs or consumers) by the city’s major service delivery agencies (with the taking from them less money in taxes and leaving exception of the Fire and Police Chiefs and other them with greater disposable incomes. By creating a elected officials) are appointed by and are directly strong vibrant city with family supporting jobs, accountable to the Mayor. strong neighborhoods, and attractive recreation opportunities, Milwaukee adds value to the lives of all its residents.

OBJECTIVE 1

Provide leadership strategies, formulate, support, and implement policies and initi a- Outcome Indicators and Funding tives which lower city residents’ tax burden, and ensure that residents receive added 2002 2003 2004 value for the tax dollars they do pay as Experience Budget Projection measured by maintaining a city tax rate of City tax rate as a percent 123.0% 122.1% 122.1% no more than 122.1% of the metropolitan of the metro area average. area average in 2004. Funding by Source: OUTCOME HISTORY Operating Funds $229,728 $240,406 $190,796 Total: $229,728 $240,406 $190,796 Ongoing control over city spending and continued efficiencies in government allowed Milwaukee to achieve its goal of having a tax

124 2004 PLAN AND BUDGET SUMMARY MAYOR’S OFFICE

rate less than 120% of the metropolitan area Figure 1 average for the first time in 1998.

Figure 1 illustrates Milwaukee’s progress in City Tax Rate as a Percentage of reducing its tax rate relative to other taxing Metropolitan Area Average 1990-2004 jurisdictions in the metropolitan area. Fluc- 140% tuations in year-to-year rates may result from 134.6% 135% differences in the timing of reassessments 131.3% 129.2% and the rate of growth in value between Mil- 130% waukee and other communities. For 2004, 131.2% 126.8% 127.6% 123.0% estimates suggest that the city will maintain a 125% 122.1% tax rate at approximately 122.1% of the met- 122.8% 122.9% 120% 122.2% 122.1% ropolitan average. 115.9%

115% 116.6% Continued reductions in Milwaukee’s tax rate 113.5% compared to the metropolitan area average 110% may prove a sterner challenge in the future. 105% Milwaukee’s largest single source of revenue, 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 state aids, continues to grow at a rate less than inflation. In 2004, total state aids de- ACTIVITIES creased by over $10.6 million or 5.5% in inflation adjusted terms from 2003 funding levels. In addition, many of the city’s general fund revenue sources • Budget coordination and planning have failed to grow at a rate sufficient to offset oper- • Strategic planning ating costs. PROGRAM CHANGES The largest component of state aid is the Shared Revenue and Expenditure Restraint Program. In Freeze in Mayoral Salary: The Common Council 2004, this revenue decreased by $9.5 million from passed legislation in November, 2003 (File 030516) 2003, a decrease of 3.8%. In addition, the future of that will freeze the salary of the Mayor and the these programs is uncertain. While Governor Doyle members of the Common Council. During the first proposed a reduction of approximately $10 million year (2004-2005) of the 2004-2008 term of office, the in shared revenue for Milwaukee, the State Legisla- Mayor and the Common Council members will be ture attempted to change the distribution of this paid the same salary as paid in the prior year (2003- revenue in a manner that would harm poorer, urban 2004) of the previous term. This change is expected areas like Milwaukee while benefiting more wealthy to save $24,233 in aldermanic salaries and $2,873 in suburban and rural areas. Governor Doyle success- mayoral salaries. fully vetoed these changes in the distribution of state aid. However, given the state’s ongoing budget Reclassification of Positions in the Mayor’s Office: problems, continued funding of the Shared Revenue The 2004 budget makes several changes in staffing and Expenditure Restraint Programs at a level nec- and compensation for positions in the Mayor’s Of- essary to provide property tax relief is uncertain. fice. Three Staff Assistant to the Mayor positions, all currently vacant, are eliminated. This reduces the With the future of state aids in question, Milwaukee number of Staff Assistant positions from five to two. faces a challenge in increasing its general fund reve- In addition, the salary grades for seven position nues at a rate sufficient to offset increases in operat- titles are downgraded. The reduction in salary ing costs. The city remains committed to controlling grades results in less compensation to these posi- costs by finding more efficient ways to provide tions. Total savings are expected to be $86,332 in services and diversifying its revenue sources. This 2004. strategy will enable Milwaukee to reduce the tax rate gap between itself and its neighbors. The Mayor’s Program Result Measures: The Mayor’s Office in Office will allocate $190,796 towards this objective in conjunction with the Budget and Policy Division, 2004. will continue its efforts to shift the focus of funding decisions from inputs to outcomes. Program result

2004 PLAN AND BUDGET SUMMARY 125 MAYOR’S OFFICE measures will aid departments in assessing their perspective, departments will routinely report their performance in meeting departmental and citywide progress toward achieving objectives as part of the strategic objectives. In order to provide a citywide city’s strategic planning efforts.

OBJECTIVE 2

Continue to make Milwaukee an even more Outcome Indicators and Funding desirable place to live, work, play, and do business by strengthening Milwaukee’s key 2002 2003 2004 attributes: Experience Budget Projection Percent of residents 74.0% 75.0% 75.0% surveyed who say • Dynamic and accessible markets gain- neighborhood is the same fully employing citizens; or getting better. • Safe, strong, and beautiful neighbo r- Funding by Source: hoods; and Operating Funds $918,912 $961,626 $763,182 • Recreational opportunities and a flour- Grant and Reimbursable 107,733 0 0 ishing culture. Total: $1,026,645 $961,626 $763,182

Progress is measured by the percentage of Figure 2 residents surveyed who say their neighbo r- hood is the same or getting better which is City Of Milwaukee Assessed Values* projected to be 75% in 2004. (In Thousands as Used for Rate Making Purposes) OUTCOME HISTORY 23,000,000 21,000,000

Improving Milwaukee’s neighborhoods has 19,000,000 been a major focus of the Mayor’s Office. In 17,000,000 recent years, mayoral initiatives, including creating the Department of Neighborhood 15,000,000 Services and dedicating more Police Officers 13,000,000 to quality of life efforts, have sought to im- 11,000,000 prove life in Milwaukee’s neighborhoods. In 9,000,000

2004, the Mayor’s Office estimates that 75% 7,000,000 of surveyed residents will state that their 5,000,000 neighborhood is the same or getting better. 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 In 2002, a survey conducted of city residents * Not adjusted for inflation showed that 74% of residents believe that their neighborhood is the same or getting better. The Mayor’s Office will allocate $763,182 to erty increases. This increase in demand for limited this objective in 2004. city property causes prices or values to rise. Figure 2 shows the marked upward trend in city property In a city committed to supporting strong markets, no values. measure more accurately captures citizens’ satisfaction with their city than the value of their property. In 2004, there was a 5.4% increase in assessed value The buying and selling of property marks the ulti- from 2003 levels. In addition, 99.3% of the city’s mate vote of confidence in a city and its government. assessment areas realized property value growth Property values reflect residents making decisions above the rate of inflation. These data illustrate that with their hard earned incomes on whether the city property values are becoming stronger across all of offers a good return for their tax dollars. the city’s neighborhoods.

As Milwaukee becomes a more desirable place to The Mayor and his staff add value to the city by live, work, and do business, the demand for prop- working closely with other elected city officials and

126 2004 PLAN AND BUDGET SUMMARY MAYOR’S OFFICE department heads to develop new strategies, poli- PROGRAM CHANGES cies, and programs that improve or maintain the strength of neighborhoods and the city economy. COMPASS Project: In 2001, the Mayor’s Office These improvements often result from simply lis- implemented a COMPASS Project funded by the tening and responding to the suggestions of con- United States Department of Justice. COMPASS stituents, labor unions, community-based organiza- stands for Community Mapping, Planning, and tions, and business groups. Individual service re- Analysis for Safety Strategies. The COMPASS Proj- quests are also answered either by Mayoral staff or ect has helped develop a database and GIS applica- through appropriate representatives. tion that integrates data from multiple departments. While this project is ongoing, the Mayor’s Office is As part of its leadership role, the Mayor’s Office also no longer receiving grant funding to support the serves as the principal advocate for the city at the project. The Information Technology and Manage- local, state, and national levels. In the role of citizen ment Division of the Department of Administration representative, the Mayor and his staff work to en- will assume primary responsibility for ongoing proj- sure that citizens and interested parties are accu- ect management, including continued development rately informed of city activities, programs, and of an institutional framework and data infrastructure policies through the media, public meetings, news- to support COMPASS efforts. The loss of letters, and other activities. COMPASS Grant funding results in elimination of the full time COMPASS Project Policy Director in the ACTIVITIES 2004 budget.

• Constituent relations Mayoral Vacancy: Mayor Norquist will resign • Intergovernmental relations early in 2004. Between the date of his resignation • Intragovernment coordination and April 20, 2004 the position of Mayor will be vacant. Common Council President Marvin Pratt • Strategic planning will assume the role of Acting Mayor, although his • Public information salary will continue to be paid from the Common • Private sector liaison Council City Clerk’s budget. To reflect the savings from the vacancy in the position of Mayor, the personnel cost adjustment for the Mayor’s Office is increased by $38,114.

2004 PLAN AND BUDGET SUMMARY 127 MAYOR’S OFFICE

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 13.33 13.50 13.21 -0.29 FTEs - Other 1.00 0.00 0.00 0.00 Total Positions Authorized 23 18 15 -3 DLH - Operations and Maintenance 23,986 24,753 23,970 -783 DLH - Other Funds 1,795 0 0 0

EXPENDITURES Salaries and Wages $809,020 $843,527 $663,709 $-179,818 Fringe Benefits 303,979 312,105 245,572 -66,533 Operating Expenditures 35,641 46,400 44,697 -1,703 Equipment 0 0 0 0 Special Funds 0 0 0 0 TOTAL $1,148,640 $1,202,032 $953,978 $-248,054

CAPITAL PROJECTS - None

ORGANIZATION CHART

Mayor

Commissioner Commissioner Director Commissioner of Public Works of Neighborhood of Administration of Health Services

Director of Commissioner Commissioner of Election Employee of Assessments City Development Commissioner Relations

City Librarian Municipal Port Director

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-66,744 COMPASS Project Policy Director No grant funding to support position.

-3 Staff Assistant to the Mayor Eliminate vacant positions.

-0.29 $-38,114 Mayor Vacany in position of Mayor. -4 -0.29 -1.00 $-38,114 $-66,744 TOTAL

128 2004 PLAN AND BUDGET SUMMARY MUNICIPAL COURT

EXECUTIVE SUMMARY

MISSION: To adjudicate ordinance violation cases impartially to ensure that the legal rights of individuals are safeguarded while the public interest is protected.

STRATEGIC Provide fair and reliable adjudication of cases despite varying caseloads. ISSUES: Enhance public safety.

Ensure public accessibility to Municipal Court services.

Continue effective enforcement of Municipal Court judgments.

Provide accountability for public resources.

INITIATIVES Installation of a new case management system (MCMIS). FOR 2004: Manage the Court’s increasing caseload to improve service to the public and minimize delay while being responsive to the public.

BACKGROUND

The Municipal Court, part of the statewide court to augment its judicial resources. There are five system, adjudicates exclusively city ordinance viola- authorized part time Municipal Court Commission- tions. The Court has three publicly elected Judges ers (equivalent to one full time position) available to who preside over the Court’s three branches. The hear traffic pre-trials and cases of defendants in the presiding Judge appoints the Chief Court Adminis- custody of the Milwaukee County Sheriff. Funds trator who oversees the administrative functions of were provided to allow the commissioners to hear the Court. cases at the Municipal Intake Courtroom at Milwau- kee County’s Criminal Justice Facility. Recognizing the volatility in the number of case filings, the Court uses Municipal Court Commissioners

OBJECTIVE 1

Provide fair, reliable, and efficient adjudica- Outcome Indicators and Funding tion of cases as measured by maintaining a level of at least 85% of non-priority cases 2002 2003 2004 Experience Budget Projection filed and tried within 90 days after intake Percentage of non-priority 99.0% 85.0% 85.0% date. cases that are tried within 90 days of intake date. OUTCOME HISTORY Funding by Source: Since 1999, the time lag between offense date Operating Funds $2,088,130 $2,187,216 $2,034,650 and arraignment date met the target of 60 Special Purpose Accounts 298,697 264,049 276,844 days or less. Pre-trials and trials also met the Capital 0 0 160,210 strategic target of 90 days or less. The Court Total: $2,386,827 $2,451,265 $2,471,704 adjudicated over 168,000 cases in 2002 and

2004 PLAN AND BUDGET SUMMARY 129 MUNICIPAL COURT

expects to hear 185,000 cases in both 2003 and Figure 1 2004 (see Figure 1). About 10% of all cases advance from intake to pre-trial and to trial. In 2004, the Municipal Court will dedicate Municipal Court Cases Filed approximately $2.5 million to this objective. 1992-2002

200,000 As a result of quality of life policing by the Milwaukee Police Department, the number of 160,000 related municipal citations has increased dramatically since 2001. The Municipal 120,000 Court responded by having the number of court sessions heard by commissioners in- 80,000 creased to the equivalent three-fourths of one full time Judge. This allows some pre-trials 40,000 to be shifted to the commissioners. Changes to streamline processing and response to 0 increased caseloads will be implemented as 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 needed. Traffic Parking Other

ACTIVITIES Night Court: The Municipal Court started con- • Court Commissioner Program at the Milwaukee ducting night court pre-trials during 2003, which has County Criminal Justice Facility (CJF) been a success. Since night court is more convenient • Centralized data entry activities for citizens, approximately 95% of the defendants scheduled to appear actually appear. PROGRAM CHANGES MCMIS Replacement: In the first half of 2001 the Court and the Department of Administration Infor- Municipal Court Commissioner Program: The 2004 mation Technology and Management Division co- budget includes $58,950 in salaries to continue Court managed a detailed analysis of the Court’s existing Commissioner services. The Court Commissioners case management software (MCMIS). Imerge Con- hear cases against people who have been arrested on sulting, a consultant hired for the project, recom- warrants or summarily arrested. In addition, the mended the replacement of the current MCMIS with Court Commissioners are hearing most pre-trials in software built in a more commonly used program- 2003. Without the assistance of Court Commission- ming language and a newer database design. ers, these pre-trials and in-custody cases would be heard by Municipal Judges, causing serious delays in Based on interviews, site visits, and the consultant’s adjudication. recommendation a vendor for the new MCMIS has been selected. The Municipal Court has hired a Court scheduling has also improved with the addi- Project Manager to finish analyzing system options. tion of Court Commissioners. Compared to prior The 2002 capital budget included funding of $1.75 lag time of 120 days or more, the Court is now well million for the purchase of the system. An addi- within 90 days between intake, pre-trial, and trial. tional $250,000 has been included in the 2004 capital budget to ensure that the system is properly in- Court Commissioners will continue to hear cases in stalled. The new system is in the installation process the Municipal Intake Courtroom at the Criminal and will be completed by September of 2004. Justice Facility (CJF) since there is no space on the Court’s premises for a court commissioner hearing room. Courier services transport case files to the Reorganization: As a result of efficiencies gained CJF and back to the Municipal Court on a daily basis from the Court’s reorganization they have achieved a net position reduction of one and a net FTE reduction of 0.98.

130 2004 PLAN AND BUDGET SUMMARY MUNICIPAL COURT

OBJECTIVE 2 Outcome Indicators and Funding

Ensure public accessibility to the Court as 2002 2003 2004 measured by increasing the number of de- Experience Budget Projection fendants using the automated voice re- Number of defendents 113,036 100,000 100,000 sponse system’s recorded information to using automated voice response system's 100,000 in 2004. recorded information. Funding by Source: OUTCOME HISTORY Operating Funds $356,832 $367,323 $348,778 Special Purpose Accounts 44,890 44,315 47,457 In an effort to strengthen the Court’s role as a Capital 0 0 27,463 service provider, the Court will dedicate Total: $401,722 $411,638 $423,698 $423,698 of its 2004 budget to continue to effectively use computer and other systems to make the Court more accessible to the public. The staff and through purchased interpretation services, Court analyzes data on an ongoing basis to deter- will remain in place during 2004. mine optimal court hours, schedules, and locations to ensure public accessibility. The Court’s auto- ACTIVITIES mated voice response system provides pre-recorded information for the most commonly asked questions. • Staff assistance to defendants with disabilities • Telephone and in-person language interpreters In 2002, the Court received over 113,0000 calls to its • Automated voice response system voice response system. A majority of the callers • Internet based cases information system proceeded further into the information menu without being transferred to staff. While relying on the PROGRAM CHANGES response system for most calls, the Court is also developing other ways to transact business with Credit Card Payments: Since August, 1999 the defendants that would further reduce the need to Court has been distributing credit card payment make multiple contacts. The Court’s web site has forms to defendants as they leave the courtrooms. been changed to include individual case data and to In 2004, these efforts are expected to further increase accommodate more information on court policies the number of transactions completed by fax or mail and procedures. It now allows defendants to and to reduce the number of calls into the Court’s download forms that they can mail or fax to the automated voice response system to no more than Court. 100,000. In 2002, the Court expanded the number of phone lines available for credit card payments based Special services, such as language interpretation for upon defendant’s feedback and requests. non-English speaking defendants through in-house

OBJECTIVE 3

Provide effective enforcement of court judgments before the Municipal Intake Court to be heard by as measured by keeping the ratio of warrants and Municipal Court Commissioners. commitments to cases adjudicated below 30% in 2004. The Court seeks to keep the ratio of warrants to citations issued at no more than 30% in 2004 as its own OUTCOME HISTORY measure of effectiveness of court orders (see Figure 2). Keeping this ratio low requires making indigence The Court has allocated $535,859 to this objective in determination as soon as possible. This will reduce 2004. Through cooperative agreements between the reissuance of warrants and will also allow for an Court and the Police Department, Police Officers immediate commitment of those who have the abil- check for outstanding city writs on defendants ity to pay but fail to pay their fine. Studies of defen- brought in by other jurisdictions at the Criminal dant compliance behavior show that timely and de- Justice Facility. These defendants are then brought cisive court actions are key factors. The ratio of

2004 PLAN AND BUDGET SUMMARY 131 MUNICIPAL COURT

writs to adjudicated cases has dropped from Outcome Indicators and Funding a high of 43% in 1993 to 29% for the year 2002. By screening defendants immediately, 2002 2003 2004 compliance can be achieved through commu- Experience Budget Projection nity service and fines paid to the Court. Ratio of warrants and 29.0% 30.0% 30.0% Immediate screenings saved defendants 7,147 commitments issued to jail days and allowed the city to avoid over the number of cases $164,667 in incarceration costs in 2001. adjudicated. Funding by Source: ACTIVITIES Operating Funds $451,291 $461,268 $441,107 Special Purpose Accounts 56,772 55,650 60,019 Capital 26,842 0 34,733 • Collection agency services and judgment Total: $534,905 $516,918 $535,859 due notices • Coordination of policies with law enforcement officials Figure 2 • Communication with public and private agencies for enforcement of judgments Ratio of Warrants and Commitments Issued • Wisconsin Correctional Services referrals to Cases Adjudicated 1993-2002

PROGRAM CHANGES 50%

Tax Intercept Program: The Municipal Court 40% implemented a pilot program to respond to a change in state law that allows courts to in- 30% tercept tax refunds for outstanding judgements. The pilot program required the Court 20% to file paperwork manually when a social security number of a defendant could be 10% obtained. While the Court had success with the pilot program, it was very labor intensive. 0% As of spring 2003, the Court’s new collection 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 agency has developed an electronic interface to file the intercepts directly with the Wiscon- sin Department of Revenue and has enhanced the has collected over $2,000,000 in owed judgements. ability to obtain most defendants’ social security The Court anticipates higher collections in 2004 by numbers. Since the program’s inception, the Court taking advantage of the next tax season.

OBJECTIVE 4

Provide accountability for public resources as measured by posting 100% of collections Outcome Indicators and Funding within 24 hours of receipt in 2004. 2002 2003 2004 OUTCOME HISTORY Experience Budget Projection Percentage of collections 100.0% 100.0% 100.0% posted within 24 hours of The Court has a track record of successfully receipt. posting all of its collections within 24 hours of their receipt. In 1998, due to further com- Funding by Source: puterization, the Court was able to reallocate Operating Funds $253,860 $259,559 $248,131 1.5 FTEs from activities relating to driving Special Purpose Accounts 31,936 31,314 33,762 records to perform needed courtroom pro- Capital 0 0 19,538 ceedings, case preparation, and records man- Total: $285,796 $290,873 $301,431

132 2004 PLAN AND BUDGET SUMMARY MUNICIPAL COURT

agement functions. In 1999, by implementing Figure 3 electronic printing, the Court has eliminated the use of pre-printed forms for producing court notices. This enabled the Court to Municipal Court Revenue transmit information electronically to the 1992-2002 Wisconsin Department of Administration via an electronic interface and realize savings by $7,000,000 reducing postage and mailing supply costs. $6,000,000

In 2004, the Municipal Court will dedicate $5,000,000 approximately $301,431 to this objective. $4,000,000

ACTIVITIES $3,000,000

$2,000,000 • Accounting controls $1,000,000 • Public information $0 • Internet posting of court statistics and 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 reports Fines and Forfeitures Charges and Other • Cost effective policy and procedures changes $2 million dollars. These revenues help offset the PROGRAM CHANGES city’s cost of various regulatory enforcement functions, such as policing and inspection services. These Revenue Generating Activities: Over the last five revenue increases result from increased court judg- years, the Court has experienced a general increase ments related to higher case filing levels over the in revenues (see Figure 3). Municipal Court revenue past five years. They also result from the Court’s for 2002 was slightly less than 2001 revenues. How- efforts to become more effective in collecting pay- ever due to the Tax Intercept Program, 2003 actual ments. revenues will exceed budgeted 2003 totals by at least

OBJECTIVE 5

Enhance the effectiveness of educational Outcome Indicators and Funding alternative programs by having 95% of de- 2002 2003 2004 fendants who complete court alternative Experience Budget Projection programs for first time offenders indicate Percentage of defendants 95.0% 95.0% 95.0% who indicate that the that the programs made them better under- programs made them stand the social and personal consequences better understand the of their offenses in 2004. consequences of their offenses. OUTCOME HISTORY Funding by Source: The Court refers first time juvenile offenders Operating Funds $102,289 $110,440 $102,289 and shoplifters who appear for arraignment Special Purpose Accounts 13,165 13,324 13,918 to classes conducted by the Institute for Capital 0 0 8,055 Criminal Justice at the University of Wiscon- Total: $115,454 $123,764 $124,262 sin-Milwaukee. Whenever appropriate, traffic offenders who appear at pre-trial are referred to the Driver Safety Program at the Milwau- Since December 1999, the Court has required the kee Area Technical College. mandatory appearance of juveniles in non-traffic cases. A warrant of arrest is issued on those who fail Of those class attendees who completed course to appear. Juveniles who appear are given the op- evaluations, 95% stated that the classes helped them portunity to perform community service instead of better understand the consequences of their offense. paying a fine in order to reduce the likelihood of payment default. Community service referrals are

2004 PLAN AND BUDGET SUMMARY 133 MUNICIPAL COURT made to Youth Services of the Social Development The Court also works with defendants, mostly Commission, Career Youth Development, the Graf- adults, at the Milwaukee Urban League, Milwaukee fiti Abatement Program of the Milwaukee Christian Community Service Corps, and other groups upon Center and Boot Camp. request. In 2003, the Court was recognized by the Public Policy Forum Board for Local Government for The Court will continue to use and monitor the use- excellence. fulness of these programs and will dedicate approximately $124,262 to explore other effective ways Juvenile Traffic Offenders: At the directive of the of reducing recidivism. Chief Judge, the jurisdiction for juvenile traffic offenders age 12 and over has moved to Municipal ACTIVITIES Court from the jurisdiction of Children’s Court. This will result in about 150 additional cases per year for • Traffic Safety School the Court. As with non-traffic cases, these cases will • Justice Alternative Court Program require the mandatory appearance of juveniles and also additional time and attention of the Judges. • Supervise graffiti and other community cleanup programs Underage Drinking Citations: Changes to city or- PROGRAM CHANGES dinances on underage drinking will increase the citations addressed by the Municipal Court. Previ- ously, underage drinkers could only be cited if they Community Court Sessions: The Municipal Court is were consuming in a public place, meaning that increasing its community outreach by holding com- those at private house parties could not be cited. munity court sessions at a variety of locations, in- The public place reference has been removed in the cluding Journey House. These sessions have experi- ordinance, allowing for Police Officers to cite under- enced a good turnout and provide more time for the age drinkers at residences. Judges to work and communicate with defendants.

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 44.17 41.78 40.80 -0.98 FTEs - Other 0.00 0.00 0.00 0.00 Total Positions Authorized 46 46 45 -1 DLH - Operations and Maintenance 67,391 75,200 73,500 -1,700 DLH - Other Funds 0 0 0 0

EXPENDITURES Salaries and Wages $1,728,878 $1,889,140 $1,858,709 $-30,431 Fringe Benefits 660,981 698,982 687,723 -11,259 Operating Expenditures 786,999 714,234 564,523 -149,711 Equipment 4,156 18,450 4,000 -14,450 Special Funds 71,388 65,000 60,000 -5,000 TOTAL $3,252,402 $3,385,806 $3,174,955 $-210,851

REVENUES Charges for Services $1,619,894 $1,150,800 $1,253,100 $102,300 Forfeitures 5,209,573 4,113,000 4,784,700 671,700 TOTAL $6,829,467 $5,263,800 $6,037,800 $774,000

CAPITAL PROJECTS - Finish MCMIS installation - $250,000

134 2004 PLAN AND BUDGET SUMMARY MUNICIPAL COURT

ORGANIZATION CHART

Municipal Judges Presiding Judge

Court Commissioners Chief Court Administrator Court Systems Administration Assistant Court Administrator

Accounting/Reception Management and Administrative Courtroom Proceedings Division Services Division Section

Accounting Section Reception Section Case Preparation Section Records Section

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-49,341 Administrative Specialist Sr

-2 -2.00 $-45,280 Office Assistant II

1 1.00 $28,341 Court Services Assistant III Reorganization efficiencies.

2 2.00 $84,338 Administrative Specialist

-1 -1.00 $-37,008 Administrative Assistant III

0.02 Miscellaneous Adjustment -1 -0.98 $-18,950 TOTAL

2004 PLAN AND BUDGET SUMMARY 135 NEIGHBORHOOD SERVICES

EXECUTIVE SUMMARY

MISSION: To enhance Milwaukee’s competitive advantage as a vibrant urban community. To work in cooperation with public and private partnerships and neighborhood residents to promote investment and improve the physical, environmental, and aesthetic conditions of Milwaukee’s neighborhoods.

STRATEGIC Develop a culture that is customer friendly, responsive, efficient, and visionary with regard to ISSUES: neighborhood service delivery and regulatory enforcement.

Protect the city’s environmental quality and building stock through education and enforcement of safety, health, property use, and maintenance regulations.

Strengthen and stabilize neighborhoods through programs that leverage greater private sector investment in neighborhoods.

INITIATIVES Continue the Neighborhood Clean Up Program and expand the Special Pick-Up Program. FOR 2004: Develop and implement electronic route sheets for inspectors to improve the efficiency and effectiveness of supervision.

Implement the housing strategy in collaboration with other city agencies.

Provide the landlord training class and materials in Spanish.

Develop inspection checklists to assist in the implementation of newly revised state commercial building codes as it impacts construction projects in the city.

Continue to work with the Milwaukee Police Department to implement the Chronic Nuisance Property Code.

BACKGROUND

The Department of Neighborhood Services (DNS) and function transferred to DCD in the 2003 budget. was created in 1999 as a response to resident con- Prior to 1999, NIDC was housed in DCD. cerns that city responses to neighborhood problems had been fragmented, ineffective, and slow. In order The primary role of DNS is to improve city neigh- to address these concerns, a variety of city programs borhoods by enforcing standards for buildings, were consolidated to create DNS. The department property, and land use. These standards help pro- includes most of the positions formerly within the tect the safety and health of residents and ensure Department of Building Inspection, the Asbestos neighborhood stability. The department uses its Program, and the Vector Nuisance Program from the enforcement, financial, and educational resources to Health Department’s Bureau of Consumer Protec- encourage investment in housing and other build- tion and Environmental Health. Although DNS ings. DNS also provides support to the city’s Stan- previously included the Neighborhood Improve- dards and Appeals Board and will continue to work ment Development Corporation, this organization with the Neighborhood Improvement Development Corporation.

136 2004 PLAN AND BUDGET SUMMARY NEIGHBORHOOD SERVICES

OBJECTIVE 1 Outcome Indicators and Funding

Improve the appearance of neighborhoods 2002 2003 2004 as measured by more than 95% of assess- Experience Budget Projection ment areas experiencing growth in property Percent of assessment 99.3% 95.0% 95.0% areas with average values greater than the rate of inflation. property value growth higher than inflation. OUTCOME HISTORY Funding by Source: One strong indicator of how neighborhoods Operating Funds $7,559,686 $7,587,432 $7,806,489 are faring is trends in property values. Grant and Reimbursable 4,279,459 2,166,605 2,551,010 Neighborhoods with the most desirable char- Capital Budget 1,995,882 260,000 0 acteristics increase in value most quickly, Special Purpose Accounts 2,013,559 1,680,605 1,725,000 while less desirable areas with code viola- Total: $15,848,586 $11,694,642 $12,082,499 tions, such as widespread graffiti, peeling paint, or buildings with a variety of structural problems will experience declining property Figure 1 values. Property value captures the effects in a variety of inter-related variables from Percent of Assessment Areas with Average measurable trends in crime rates, graffiti, Property Value Growth Above Inflation building maintenance and homeownership, 140.0% to intangibles such as neighborhood cohe- siveness and a sense of community. Al- 120.0% though many of these factors are not under city control, knowledge about trends in as- 100.0% 97.1% 99.3% 99.3% 99.3% sessed value can help the city develop more 80.0% effective strategies for neighborhood im- 77.4% provement. 60.0% 70.3%

51.4% 40.0% Figure 1 shows that Milwaukee has made 43.5% significant progress in improving neighbor- 24.4% 20.0% hood property values. For the 1988 assessments, only 24% of assessment areas had 0.0% average property values that grew faster than 1988 1990 1992 1994 1996 1998 2000 2001 2002 the inflation rate. In 2002, all 139 assessment districts grew and over 99% of areas had ACTIVITIES value growth that exceeded the inflation rate. DNS’ 2004 goal is to maintain this trend so that 95% or more of the city’s assessment areas continue to grow • Housing and building inspections including: faster than the inflation rate. • Litter and vector • Building maintenance In 2004, DNS will dedicate $7.8 million in operating • Nuisance auto funds to improve the appearance of neighborhoods. • Graffiti In addition, approximately $1.7 million in special purpose accounts and $2.6 million in grant funding • Waste tires will support this objective. • Asbestos • Ordinance required inspections (i.e., laun- DNS works to improve and increase the efficiency of dromats, massage parlors, rooming houses) activities that enhance the appearance of neighbor- • Certificate of Code Compliance Program hoods, such as litter citation, towing abandoned • Condemnation and demolition autos, and building code enforcement. In 2004, DNS • Public nuisance cases will continue to develop and implement strategies to enhance neighborhood appearance. • Resident and owner education programs • Vacant lot maintenance

2004 PLAN AND BUDGET SUMMARY 137 NEIGHBORHOOD SERVICES

PROGRAM CHANGES Figure 2

Milwaukee Area Domestic Animal Control Three Year Public Structure Fire Incident Rate Commission (MADACC): MADACC is 1991-2002 responsible for the handling and holding of 1.0 stray, running at large, and quarantined do- 0.9 mestic animals. In 2004, DNS will continue to 0.8 work on a number of issues related to the licensing of domestic animals with the other 0.7 18 municipalities that are part of MADACC. 0.6 The 2004 budget includes $1.4 million for 0.5 animal control services, an increase of $60,106 0.4 from 2003. 0.3 0.2

Targeted Enforcement Efforts: The city’s Number of Fires per 1,000 Population 0.1 housing strategy calls for DNS to target pro- 0.0 gram resources in specific areas to maximize 1991-93 1992-94 1993-95 1994-96 1995-97 1996-98 1997-99 1998-00 1999-01 2000-02 benefits. This includes loan and grant pro- Nationwide Milwaukee grams, inspection and enforcement programs, and to the extent possible, coordination with other city programs. In 2002, DNS began targeting Strategic Planning areas. A potential conflict of in- its discretionary resources in the ten designated Tar- terest between DCD and NIDC resulted in the trans- geted Investment Neighborhoods (TINs) and the fer of the NIP Program back to DNS. The Common catalytic project areas that were developed in col- Council approved this transfer of positions in July, laboration with DCD. In addition, the Milwaukee 2003. This results in the transfer of seven positions Police Department provided a high level of policing from DCD to DNS. Total grant funding of $385,000 activities within the TINs in conjunction with inten- is anticipated for the NIP Program in 2004. (See the sive enforcement efforts. These collaborative efforts Department of City Development section of the 2004 among these departments will continue in 2004. Plan and Budget Summary for more information on Anticipated grant funding of $282,750 is provided the NIP transfer.) for this effort. Property Recording Staff: Funding for one half time Transfer of Neighborhood Improvement Program Office Assistant II position in the Administrative to DNS from DCD: The 2003 budget transferred Service Section is eliminated in the 2004 budget, with NIDC to the Department of City Development salary savings of $12,616. This reduces the staff (DCD). This transfer included the Neighborhood available to maintain the Property Recording System, Improvement Program. This program provides including entry of ownership data. The system will home rehabilitation services to low and very low continue to be maintained and updated, although income owner occupants in the 17 Neighborhood there may be some delays in entering and processing changes.

OBJECTIVE 2

Maintain the city’s three year public stru c- Outcome Indicators and Funding ture fire incident rate per 1,000 residents at or below the national average of 0.78 fires. 2002 2003 2004 Experience Budget Projection Three-year average public 0.55 0.44 0.44 OUTCOME HISTORY fire incident rate per 1,000 residents. A number of DNS activities and programs are Funding by Source: focused on creating safer City of Milwaukee Operating Funds $5,138,451 $5,115,033 $5,140,073 buildings by reducing the risk of fire. DNS Capital Budget 1,700,194 0 0 inspects buildings for appropriate fire exits Total: $6,838,645 $5,115,033 $5,140,073

138 2004 PLAN AND BUDGET SUMMARY NEIGHBORHOOD SERVICES

and firewalls, inspects electrical modifications Figure 3 to insure that they are installed properly, and conducts periodic fire and sprinkler inspec- City of Milwaukee Public Fires* tions of commercial buildings and apartment 1992-2002 complexes in order to create safer buildings. The 2004 budget includes $5.1 million to meet 400 this objective. 350

While other city department activities also 300 influence Milwaukee’s fire incident rate, work 250 conducted by DNS has helped the city consis- 200 tently maintain its three year average public 150 fire incident rate well below the national av- Number of Fires erage (see Figure 2). Milwaukee’s three year 100 average fire incident rate from 2000 to 2002 50 was about 30% lower than the national rate. 0 In addition, Milwaukee has maintained a low 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 per capita fire incident rate even though over * Excluding one and two family dwellings, vacant buildings, and garages. the last three years the number of fires have Source: City of Milwaukee Fire Department increased and the population has decreased • (see Figure 3). Since 1989, the number of fires has Heating, HVAC, boiler decreased by 200 or 39.6%. This is particularly • Elevator noteworthy due to the aging building stock in Mil- • Plumbing/sprinkler waukee. • Hazardous tanks • Commercial fire inspections ACTIVITIES • Restaurant fire inspections • Licensing • Permit inspections • Periodic inspection • Construction • Cross connections • Electrical

OTHER ACTIVITIES AND CHANGES

Increasing Revenue: DNS has made several efforts non-levy sources rather than burdening the property to increase revenue and to improve the recovery of taxpayer with this expense. The 2004 budget in- its operating costs. The department oversees the cludes numerous changes in DNS revenues. The issuance of numerous licenses and permits as well as changes include fee increases to account for infla- several other charges for service. Revenues have tionary cost increases, increases to make fees compa- increased from $9.8 million in 1999 to $12 million in rable to those charged in surrounding municipalities, 2002. In 2002, revenues offset more than 90% of and creating new fees to better recover costs in- DNS direct operating costs. The more that revenue curred by the department. Approximately $500,000 is increased, the more that DNS costs are offset from in new revenue should be realized in 2004.

2004 PLAN AND BUDGET SUMMARY 139 NEIGHBORHOOD SERVICES

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 164.14 163.80 166.58 2.78 FTEs - Other 53.28 20.50 30.50 10.00 Total Positions Authorized 288 216 223 7 DLH - Operations and Maintenance 295,448 294,840 299,844 5,004 DLH - Other Funds 95,906 36,900 54,900 18,000

EXPENDITURES Salaries and Wages $7,357,182 $7,290,980 $7,303,827 $12,847 Fringe Benefits 2,634,475 2,697,663 2,702,416 4,753 Operating Expenditures 1,044,635 999,318 1,040,319 41,001 Equipment 137,174 89,610 90,000 390 Special Funds 1,524,671 1,624,894 1,810,000 185,106 TOTAL $12,698,137 $12,702,465 $12,946,562 $244,097

REVENUES Charges for Services $6,128,816 $4,257,000 $5,273,700 $1,016,700 Licenses and Permits 5,181,437 4,105,800 4,649,200 543,400 Intergovernmental Aids 675,812 580,000 750,000 170,000 TOTAL $11,986,065 $8,942,800 $10,672,900 $1,730,100

CAPITAL PROJECTS - None

ORGANIZATION CHART

Office of the Commissioner

Information Technology Divi- Support Services Division Construction Trades Division sion

Nuisance and Environmental Commercial Inspection Division Residential Inspection Division Health Division

140 2004 PLAN AND BUDGET SUMMARY NEIGHBORHOOD SERVICES

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason -0.50 $-12,616 Office Assistant II (0.5 FTE) Reduction in property recording staffing.

-1 -1.00 $-61,451 Health Enforcement Specialist Reclassification approved in 2003. 1 1.00 $50,252 Code Enforcement Assistant Supervisor

1 1.00 $60,872 Code Enforcement Assistant Supervisor

1 0.00 Housing Rehabilitation Coordinator Neighborhood Improvement Program staff transferred to DNS 3 3.00 $142,900 Housing Rehabilitation Inspector from DCD. 1 1.00 $41,000 Administrative Specialist Sr

1 1.00 $32,000 Office Assistant III

3.28 4.00 Miscellaneous Adjustment 7 2.78 10.00 $-23,815 $276,772 TOTAL

2004 PLAN AND BUDGET SUMMARY 141 POLICE DEPARTMENT

EXECUTIVE SUMMARY

MISSION: To reduce crime and enhance the quality of life in the City of Milwaukee.

STRATEGIC Enhance and improve the quality of life in Milwaukee’s neighborhoods by addressing minor ISSUES: offenses that often lead to more serious crime.

Reduce crime in order to retain residents and businesses within the city.

Provide services in a manner that meets the needs of a diverse community.

Use statistical analysis to target resources effectively and to hold managers accountable for results.

Achieve the city’s public safety goals by working cooperatively with city agencies and other components of the criminal justice process.

INITIATIVES Finish implementation of the new Computer Aided Dispatch and Records Management Sys- FOR 2004: tem at the Data and Communications Center.

Work to implement the Mayor’s Commission on Crime recommendations to improve public safety and lower the violent crime rate.

Continue upgrading the city’s current radio infrastructure and improving emergency communications.

Continue to direct policing resources where they are most needed and in a way that maximizes impacts on citywide safety and quality of life.

Utilize block grant funding to implement the ”Operation Safe Neighborhoods” Program through additional patrols.

BACKGROUND

The Milwaukee Police Department (MPD) has en- In Milwaukee, the Police Department responds ag- sured the safety of the community since 1855. Law gressively to emerging crime trends, as well as en- enforcement personnel, most of them recruited and forcing minor municipal violations. This dual strat- trained by the department itself, serve the public egy allows the department to minimize disorder, from an administration building, seven district sta- prevent more serious crimes from occurring, and tions, a data communications center, and a training continue its focus on the quality of life in Milwau- academy. kee’s neighborhoods.

The Milwaukee Police Department continues its The Milwaukee Police Department also adds value commitment to the city’s strategic plan goal of pro- to the community in less direct ways. For example, tecting citizens from crime by continuing its strategic directed missions make Milwaukee’s famous festi- focus on the quality of life in the community. Police vals and special events run smoothly and safely. departments are recognizing that their strategic vi- More importantly, a strong, visible police presence sion is about the quality of life in the communities downtown, at festivals, and in neighborhoods cre- they serve, rather than shortening response times, or ates a lasting impression of safety in the minds of some other measure of “outputs”. tourists and business visitors.

142 2004 PLAN AND BUDGET SUMMARY POLICE DEPARTMENT

Increasingly, the Milwaukee Police Department re- sues from a broader strategic perspective. These lies on partnerships with other agencies and com- collaborations help to leverage the city’s resources munity leaders to address neighborhood safety is- and create long term results for the city as a whole.

OBJECTIVE 1

Respond to the commission on crimes, successfully detect criminal activity, and ide n- Outcome Indicators and Funding tify, apprehend, and assist in the prosec u- tion of criminal offenders by clearing at 2002 2003 2004 Experience Budget Projection least 12.5% of reported crimes by arrest in Percent of reported crimes 9.1% 12.0% 12.5% 2004. cleared by arrest.

OUTCOME HISTORY Funding by Source: Operating Funds $91,545,245 $86,136,683 $94,642,371 Clearance rates refer to the percentage of Grant and Reimbursable 146,000 2,644,325 460,716 reported crimes for which one or more ar- Capital Budget 4,074,177 2,495,446 3,621,228 rests are made (or, the suspect is identified Total: $95,765,422 $91,276,454 $98,724,315 but due to death or other “exceptional” circumstances cannot be arrested). In 2004, the Police Department will devote approximately Figure 1 $98.7 million to investigating, solving, and clearing crimes by arrest. Clearance Rates by Index Crime Milwaukee Police Department 2002 Figure 1 shows that Milwaukee’s total clearance rate of 9.1% (2002) includes much higher Criminal Homicide rates for crimes against persons (murder, 78.7 rape, robbery, and assault). Property crimes Rape 52.8

(burglary, larceny, and motor vehicle theft) Robbery 14.8 typically have lower clearance rates due to Assault 41.3 the large volume and lack of direct contact between the criminal and the victim. Burglary 7.5

Larceny 6.2 A high clearance rate is important for two Motor VehicleTheft 5.9 reasons: arrests deter the arrested offender (specific deterrence) and a consistently high All Index Crimes 9.1 clearance rate sends the message to would be 0 10 20 30 40 50 60 70 80 90 perpetrators that few people get away with Percent of Actual Offenses Cleared committing crimes (general deterrence). But the deterrent effect of police investigations and arrests ultimately depends on criminals reports. Consequently, although many crimes re- promptly facing real consequences for their actions, ported to the FBI are in fact drug related, the FBI including incarceration. Early prison release un- reported clearance rate does not directly measure dermines deterrence effects. the effectiveness of these special units, nor their impact on other types of serious crime. The Police Department estimates that Milwaukee’s ACTIVITIES overall total clearance rate will be 12.5% in 2004, the same it was in 2001. However, clearance rates only • represent part of the Police Department’s impact on Criminal investigations public safety and criminal behavior. This objective • Drug abatement includes funding for the Vice and Intelligence Divi- • Vice control sions and other efforts related to tracking and halt- • Intelligence operations ing the trade of drugs in Milwaukee. Narcotics of- • Special initiatives fenses do not factor into the FBI index or clearance • Training resolving and clearing crimes

2004 PLAN AND BUDGET SUMMARY 143 POLICE DEPARTMENT

PROGRAM CHANGES of federal, state, and local law enforcement agencies to stop drug trafficking. The Milwaukee Police De- High Intensity Drug Trafficking Area Project partment receives reimbursement by the HIDTA (HIDTA): Since 1998, the Police Department has project for staff time committed to the project’s sev- participated in a cooperative anti-drug initiative eral task forces. In 2004, this grant will fund 17 posi- known as HIDTA. HIDTA, funded by the Office of tions at 50%. National Drug Control Policy, combines the efforts

OBJECTIVE 2

Prevent, deter, and suppress crime by d e- Outcome Indicators and Funding creasing violent crimes per 100,000 residents by 5.8% in 2004 as measured by the FBI 2002 2003 2004 Violent Crime Index. Experience Budget Projection Percent change in 5.80% -5.80% -5.80% OUTCOME HISTORY reported violent crimes.

In 2004, the MPD will devote approximately Funding by Source: $43.7 million to minimizing criminal activity. Operating Funds $39,688,900 $37,335,901 $40,396,151 In 2001, a new outcome indicator to measure Grant and Reimbursable 337,060 637,880 1,714,985 the department’s effectiveness in preventing, Capital Budget 1,768,537 1,084,496 1,571,918 deterring, and suppressing crime was intro- Total: $41,794,497 $39,058,277 $43,683,054 duced. This measure tracks the percentage change in reported violent crimes per 100,000 residents. The FBI Violent Crime Index, a Figure 2 uniform national reporting instrument, is composed of reported crimes of homicide, City of Milwaukee Homicides and rape, robbery, and aggravated assault. Violent Crime Rate per 100,000 (1993-2002)

Measuring the change in violent crime from 1,100 180 year-to-year makes the city’s trend in public 160 1,050 safety more clear. Figure 2 depicts the num- 140 ber of homicides and the city’s violent crime 1,000 120 rate per 100,000 residents for the years 1993 100 950 through 2002. The chart shows that Milwau- 80 kee’s 2002 violent crime rate of 968.0 crimes 900 60 per 100,000 residents was 5.8% higher than 40 the 2001 rate, which was the lowest in the 850 past ten years. The MPD will utilize all 20 800 0 available resources to ensure the rise in the 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 violent crime rate does not continue. Violent Crime Rate Homicides The number of homicides, the most serious factor of the violent crime index, has shown a The FBI Violent Crime Index, while valid for a decrease from 2001. In 2002, the city had 108 homi- means of measurement, includes only “serious” cides, compared to 127 in 2001, a 14.9% decrease. crimes. In order to be effective, police departments While the department’s ideal would be to reduce must also be successful at reducing “minor” crimes this number to as close to zero as possible, homi- and municipal ordinance violations that could po- cides have decreased 30.8% from 1993. The depart- tentially lead to more serious crime. ment projects that the violent crime rate, including the number of homicides, will decrease by an addi- The Milwaukee Police Department has a central tional 5.8% in 2003. mission focused on the “quality of life” in Milwau- kee. In order to achieve this mission, the department

144 2004 PLAN AND BUDGET SUMMARY POLICE DEPARTMENT relies on a weekly process known as “crime analy- overtime expenses. This amount is similar to the sis” which centers around examining localized crime MPD’s current amount when adjusted for the recent trends in detail and holding supervisors accountable Milwaukee Police Association contract settlement. for addressing specific trends or concerns. Imple- mentation of quality of life policing has helped offi- Mayor’s Commission on Crime: In 2000, the Mayor cers and supervisors at all levels be more proactive formed a community-based commission to make than reactive, and focus resources on the tasks, recommendations on how to reduce violent crimes. problems, and geographic areas with the largest Since its creation, the commission and Police De- potential for improving Milwaukee’s overall safety. partment have acted on many recommendations such as the opening of the Third District Community ACTIVITIES Justice Center at 1953 North 34th Street. Two additional Community Justice Centers, one at 2501 West • Patrol Galena Street and one at 2128 North 23rd Street have • Area specific patrol opened since the Third District center in 2001. On- • Bicycle patrol going quarterly crime meetings provide residents with face-to-face contact with service providers like • Neighborhood foot patrol the Police Department and other governmental de- • Mounted patrol partments such as the Department of Public Works • Boat patrol and Neighborhood Services. City personnel take • Special Operations Bureau/Patrol Support Divi- complaints from citizens and report outcomes at sion activities subsequent meetings. Other ongoing activities in- • Tactical enforcement clude increasing the number of safe place sites operated through the Safe and Sound Program, which • Coordination with neighborhood groups and has grown from 51 to 106 since 1999. businesses • Community relations and public information The Milwaukee Police Department has worked with the Crime Commission and the Fire and Police PROGRAM CHANGES Commission to implement other crime reduction strategies in each police district. Operation Safe Neighborhoods: The 2004 budget utilizes $500,000 in Community Development Block Community Safety Coalition: Since its inception in Grant (CDBG) reprogramming funding to continue April 2000, the Community Safety Coalition, a col- an “Operation Safe Neighborhoods” Patrol Program. laborative effort by members of law enforcement, the The funds will pay for police officer overtime when faith-based community, and community-based or- those officers are performing additional neighbor- ganizations, has continued to grow. It currently has hood patrols in the Neighborhood Strategic Planning 162 listed members who are concerned about the Areas. The additional patrols will allow the MPD to quality of life in their communities. The Coalition quickly address situations in these neighborhoods. continues to meet monthly to develop cooperative, This program began in 2003, utilizing $400,000 of strategic approaches to fighting and reducing crime CDBG funding. in the City of Milwaukee.

Overtime: The 2004 budget provides $9.8 million, an increase of $700,000 from the 2003 budget for

OBJECTIVE 3

Provide services in a manner acceptable to a di- OUTCOME HISTORY verse community with varying needs and demands for police services maintaining at least 92% of city A positive image of the police among Milwaukee residents rating interactions with police as “sati s- residents reinforces the department’s efforts to re- factory” or “better” in 2004. duce disorder, prevent, and deter criminal activity, and clear crimes that are committed. The department maintains an impressive record in terms of citizen satisfaction. In 2001, approximately 92% of

2004 PLAN AND BUDGET SUMMARY 145 POLICE DEPARTMENT

citizens interviewed who had interaction Outcome Indicators and Funding with the Police Department indicated that police services were “satisfactory” or “bet- 2002 2003 2004 ter”, far surpassing the expected level of Experience Budget Projection around 70%. Due to personnel and computer Percentage of city N/A 92.0% 92.0% problems, the department was unable to residents rating complete this survey in 2002. The survey has interactions with Police as reconvened for 2003 and that data will be "satifactory" or "better." available for the 2005 budget. Funding by Source: Operating Funds $44,122,349 $45,338,071 $44,908,602 The survey instrument used to determine Grant and Reimbursable 7,201,193 7,465,477 7,494,238 satisfaction was developed in 1994 with the Capital Budget 1,481,569 991,851 1,316,854 assistance of an independent consultant. It Total: $52,805,111 $53,795,399 $53,719,694 covers citizen satisfaction with response time, usefulness of officer actions, officer conduct, and an overall rating of the citizen’s contact • Identification with the department. • Property control Educational programs for officers and city residents • License investigation contribute to this objective. Officers and supervisors receive training on diversity, sensitivity, and com- PROGRAM CHANGES munity relations. The Police Department also reaches out into the community with home safety Position Changes: With the advancements in desk- training, educational programs in schools, and other top computer systems and the reduction of com- information on avoiding crime. These activities al- puter mainframe systems, the 2004 budget funds the low the Police Department to focus on the diversity position of Systems Analyst Project Leader for six of the citizens they serve. In 2004, the Police De- months which produces salary and fringe benefit partment estimates they will maintain the 92% level savings of $52,499. With the introduction of the of citizen satisfaction with police services that was highly computerized Computer Aided Dispatch and experienced in 2001. Records Management Systems, along with the Digi- tal Radio System currently being implemented, the It is not only training that determines how well focus of the Police Department’s Technical Services services are delivered. In 2000, this objective was Bureau has drastically changed to this PC format. reformulated to incorporate efforts to maintain a fleet of vehicles, radio communications infrastruc- Departmental Printing: The 2004 budget originally ture, dispatching systems and communications per- eliminated the Police Department’s Print Shop, sonnel that keep Police Officers “on the street” and which was consistent with the city actions regarding in touch with events and each other. It also includes Milwaukee Printing and Records (MPR). The city is expenditures for technologies that create efficient currently phasing out some of its printing operations processes and provide sworn and civilian managers and is developing several master contracts through a with better and more timely information. The ex- competitive process to better utilize the city’s collec- penditure level for this objective reflects the fact that tive buying power for its printing needs. This each officer on the street and each detective investi- change however, was reversed through a Common gating crimes relies on a large supporting cast to Council amendment. Instead, the MPD and the De- meet the needs of the community. The 2004 budget partment of Administration will together study the provides $53.7 million toward this objective. possibilities of utilizing the Police Department’s Print Shop for other city departments, outsourcing ACTIVITIES future printing, and consolidating the remaining city printing operations. • Community services • Safety Division Improving the City’s Radio Infrastructure: The • Building and fleet maintenance Federal Communications Commission (FCC) has • Communications operations and maintenance changed radio and television transmission regulations, necessitating the replacement of the current • Central records MPD radio system by sometime around 2005.

146 2004 PLAN AND BUDGET SUMMARY POLICE DEPARTMENT

Through an open Request for Proposal process, the The Vehicle Fleet: The 2004 budget provides fund- MPD has procured a contract with MA/Com for a ing for 35 police cars, a decrease from the 47 police replacement radio system. The Police Department is cars that were funded in 2003. While there is a de- currently in the process of constructing the first two crease of police cars being purchased in 2004, the phases of a digital radio system with $6.5 million of MPD is expanding its purchasing of sergeant patrol grant funding and $2 million of 2003 capital funds. trucks to five, cargo vans to three, prisoner convey- This new technology will greatly enhance the city’s ance vehicles to six, and a Suburban for the Tactical communications capabilities. Phase one of the proj- Unit. As in 2003, the MPD will purchase eight ect involves the purchase of the radio infrastructure Harley Davidson motorcycles in 2004 for patrols. necessary to support mobile data computers and The MPD will also utilize Local Law Enforcement voice communications. Phase two of the project Block Grant Funds to purchase an additional 24 po- involves the purchase of Mobile Data Computers lice cars, 1 sergeant patrol truck, and 7 motorcycles (MDC’s) for squad cars. For 2004, the MPD will in 2004. continue its implementation plan for voice transmission. There will be three more radio tower sites and Police Officer Recruitment Classes: The 2004 mobile repeaters added to the basic infrastructure budget includes funding for two Police Officer re- for optimal transmission coverage. The MPD will cruitment classes. These two classes will bring ap- also purchase new mobile radios for the rest of the proximately 120 new Police Officers into the sworn department vehicles in order to transmit voice to all ranks. squads. The MPD is aggressively pursuing grant funding for this and the remaining phases of the project.

OTHER ACTIVITIES AND CHANGES

Grant Programs: The 2004 budget contains a total of Position Reclassifications: The 2004 budget reflects 31.5 positions, or 23.5 full time equivalents sup- several position changes that were reclassified dur- ported by grant programs, not including the “Opera- ing 2003. These positions include the Mail Proces- tion Safe Neighborhoods” Program block grant sor, Identification Technician, and a Telecommunica- funding for overtime. This is an increase of one po- tion Supervisor. The 2004 budget also reclassifies sition from 2003 due to a change with the Judicial the Safety Director into a Safety Manager position, Oversight Initiative, which adds funding for a Vic- reducing its salary grade to one consistent with tim’s Advocate position. The department will con- similar positions. tinue to make a good faith effort to retain all positions created through grant programs with other Civilianization: The 2004 budget continues to civil- available grant resources. Grant funded positions ianize positions in the department that are not di- contribute to the department’s ability to ensure pub- rectly involved in law enforcement and perform lic safety and provide effective law enforcement. duties similar to positions in other departments. The department will continue to seek additional This is represented in the budget by the replacement grants when they make a significant contribution to of two Police Electronic Technicians with two Elec- the city’s law enforcement efforts. The Police De- tronic Technicians and two Police Alarm Operators partment continues a policy of aggressively pursuing with two Police Dispatchers. This is part of the final grants to supplement its investments in equipment phase of civilianizing the Dispatcher positions, a and technology and to fund one time expenditures. process that began in 1999. These changes create salary and fringe savings of $65,273. These changes were made during the 2003 budget year but are now represented in the 2004 budget.

2004 PLAN AND BUDGET SUMMARY 147 POLICE DEPARTMENT

CAPITAL PROJECTS

The 2004 capital budget includes $6.5 million in new District Six Repairs: Police District Six main office funding for MPD projects. Key projects in 2004 in- space has experienced significant wear and deterio- clude: ration since it was built over 16 years ago. The car- peting that was installed has completely worn out Digital Radio System: The 2004 capital budget in- and numerous horizontal files and partitions are cludes $5 million for a portion of the new digital unusable due to breakdowns. The 2004 capital radio system required to meet new FCC transmis- budget funds $100,000 for the installation of high sion standards effective in 2005. The $5 million will wear tile flooring and replacement of office furni- fund a portion of phase two of the project. Phase ture. The new flooring will reduce maintenance one (infrastructure) is being funded through $6.5 costs for the MPD by eliminating the need for carpet million in grant funds and $2 million in 2003 ap- cleaning. proved capital funds. Capital funding for 2004 will fund the voice transmission portion of the imple- Evidence Storage Warehouse: The Police Depart- mentation plan. The MPD must add three more ment’s Evidence Storage Warehouse needs expan- radio tower sites and mobile repeaters and new mo- sion. Recent court decisions and identification tech- bile radios for department vehicles in order to nology advancements have increased the evidence transmit voice to all MPD squads. retention needs and requirements. Pursuant to ACT 109, DNA evidence must be retained for the length Firing Range at Training Academy: The current of a convicted individual’s sentence or their death, firing range at the Training Academy was con- whichever comes first. This means the MPD must structed in the early 1980’s. Since that time, firearms store more evidence for a longer period of time. To training programs have progressed, increasing the expand the warehouse into floors currently not used, number of rounds fired to attain state certification $425,000 in funding has been provided for this proj- and maintain proficiency. The MPD shoots ap- ect. proximately one million rounds of ammunition per year in the Live Firearms Training Program. The District Five Generator: The current generator at current range was also built to handle smaller caliber Police District Five is 27 years old and has become ammunition that was used at that time. Current very expensive to maintain. There has also been MPD firearms are of a higher caliber. Between the difficulty in obtaining parts for repairs and mainte- number of rounds and the higher caliber, the current nance. The capital budget provides $35,000 to re- range deceleration chambers have worn out and place the generator. experience a constant buildup of lead. This can cause unsafe firing conditions, requiring their replacement. The 2004 capital budget includes $950,000 for this project.

148 2004 PLAN AND BUDGET SUMMARY POLICE DEPARTMENT

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 2,747.38 2,591.50 2,636.84 45.34 FTEs - Other 17.60 32.80 36.45 3.65 Total Positions Authorized 2,952 2,952 2,951 -1 DLH - Operations and Maintenance 4,533,183 4,275,975 4,350,787 74,812 DLH - Other Funds 29,040 54,120 60,143 6,023

EXPENDITURES Salaries and Wages $125,216,459 $120,087,582 $129,572,402 $9,484,820 Fringe Benefits 39,094,415 37,227,151 38,871,721 1,644,570 Operating Expenditures 9,759,167 9,949,514 10,075,629 126,115 Equipment 1,286,454 1,546,408 1,427,377 -119,031 Special Funds 0 0 0 0 TOTAL $175,356,495 $168,810,655 $179,947,129 $11,136,474

REVENUES Intergovernmental $675,960 $575,000 $516,000 $-59,000 Charges for Services 319,958 191,500 241,500 50,000 TOTAL $995,918 $766,500 $757,500 $-9,000

CAPITAL PROJECTS - Includes $6,510,000 for the following projects: a. Digital Radio System - $5,000,000 b. Firing Range at Training Academy - $950,000 c. District Six Repairs - $100,000 d. Evidence Storage Warehouse - $425,000 e. District Five Generator - $35,000

ORGANIZATION CHART

Board of Fire and Police Commissioners

Chief of Police

Office of the Chief

Office of the Assistant Chief

Administration/Services Operations

2004 PLAN AND BUDGET SUMMARY 149 POLICE DEPARTMENT

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

Administration Services Decision Unit 8 8.00 Various Positions Technical corrections.

1 1.00 $58,671 Administrative Lieutenant of Police

3 3.00 $150,759 Police Officer Transfer Special Assignment Division to Office of Assistant Chief. 1 1.00 $53,112 Police Sergeant

1 1.00 $58,410 Detective

-1 -1.00 $-44,571 Personnel Officer Position correction. 1 1.00 $41,822 Personnel Analyst Sr

-1 -1.00 $-69,316 Safety Director

1 1.00 $69,316 Safety Manager

-1 -1.00 $-44,571 Telecommunications Supervisor

1 1.00 $44,571 Telecommunications Supervisor Positions reclassified. -2 -2.00 $-62,720 Mail Processor

2 2.00 $62,720 Mail Processor

-37 -37.00 $-1,973,420 Identification Technician

37 37.00 $1,973,420 Identification Technician

0 -0.50 $-40,384 Systems Analyst Project Leader Position funded for only six months.

-2 -2.00 $-172,140 Commander of Police Title change. 2 2.00 $177,494 Police Inspector

-2 -2.00 $-109,672 Police Alarm Operator

2 2.00 $69,738 Police Dispatcher Civilianization. -2 -2.00 $-110,117 Police Electronic Technician

2 2.00 $99,840 Electronic Technician

0.70 Grant Funding FTE Change

28.28 Experience and Vacancy Adjustment

150 2004 PLAN AND BUDGET SUMMARY POLICE DEPARTMENT

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

Operations Decision Unit -8 -8.00 Various Positions Technical corrections.

-1 -1.00 $-58,671 Administrative Lieutenant of Police

-3 -3.00 $-150,759 Police Officer Transfer Special Assignment Division to Office of Assistant Chief. -1 -1.00 $-53,112 Police Sergeant

-1 -1.00 $-58,410 Detective

1 1.00 $33,416 Administrative Services Specialist Judicial Oversight Grant.

-2 -2.00 $-123,815 Lieutenant of Police

1 1.00 $61,958 Lieutenant of Detectives

2 2.00 $116,821 Detective

-1 -1.00 $-27,780 Office Assistant II HIDTA Grant.

-2 -2.00 $-106,032 Police Sergeant

1 1.00 $50,253 Police Officer

-1 -1.00 $-27,780 Office Assistant II

3.95 Grants and Aids Deduction Change

17.56 Experience and Vacancy Adjustment

TOTAL -1 45.34 3.65 $-87,990 $-22,959

2004 PLAN AND BUDGET SUMMARY 151 PORT OF MILWAUKEE

EXECUTIVE SUMMARY

MISSION: To enhance the overall economic environment of the Milwaukee region by stimulating trade, business, and employment.

STRATEGIC Become universally recognized as a quality provider of transportation and distribution services ISSUES: in the Midwest.

Maintain financial self-sufficiency.

Accentuate competitiveness and individualized customer services.

INITIATIVES Construct the boarding terminal for the new high speed auto/passenger ferry, which will begin FOR 2004: service in June, 2004.

Renew land lease agreements with private companies.

Study and evaluate alternative uses for vacant Port property in cooperation with other city departments.

BACKGROUND

The Port of Milwaukee administers 467 dry acres of location close to downtown. The seven member city owned property at or near the city’s lakefront. Board of Harbor Commissioners governs the Milwaukee World Festivals, Inc. currently leases promotion, marketing, maintenance, and operations roughly two-thirds of the Port’s north harbor land functions of the Port. for the Maier Festival Grounds, home of Summerfest, various ethnic festivals, and the Marcus Over the last 30 years, as the economy of Milwaukee Amphitheater. Smaller leaseholders and city owned and America has shifted from manufacturing to facilities account for most of the remaining acreage. services and other goods, the Port of Milwaukee has adapted. The mix of cargoes has shifted largely to The Port of Milwaukee stimulates trade, business, imports, especially salt and coal which are used and employment by serving as a regional locally and throughout the region. In addition to transportation and distribution hub for Southeastern these commodities, the Port seeks to diversify its Wisconsin. The Port links waterborne, rail, and activities through partnerships with recreational ground surface transportation in an accessible businesses and passenger related travel services.

OBJECTIVE 1

To focus on business based operations and to be matic improvement from previous years. From 1993 financially self-sustaining in 2004 by recovering to 2002, Port revenues covered 88.8% of operating 100% of operating expenses or more with revenue expenses on average. The gap between revenues from Port activities. and expenditures is shown in Figure 1, with revenues still exceeding expenditures in 2002. OUTCOME HISTORY The Port doubled its revenue between 2000 and 2001 In 2002, the Port of Milwaukee generated operating by securing a new lease of the Maier Festival revenue of almost $3.5 million. Revenues exceeded Grounds and increasing tonnage. Milwaukee World expenses by more than 6%. This represented a dra- Festivals, Inc. annually holds Summerfest and a host of ethnic festivals on the 75 acre Maier Festival

152 2004 PLAN AND BUDGET SUMMARY PORT OF MILWAUKEE

Grounds. This lease alone generates $960,000 Outcome Indicators and Funding for the Port, with the revenue transferred to 2002 2003 2004 the city’s General Fund to ease the property Experience Budget Projection tax burden. In 2004, the Port will continue to Percent of total expenses 106.2% 100.0% 100.0% transfer revenues from this lease to the Gen- covered by revenues. eral Fund. Funding by Source: In 2002 there was a slight decrease in ton- Operating Funds $3,248,046 $3,280,923 $3,422,909 nage. Compared to 2001, total tonnage Grant and Reimbursable 0 1,600,000 1,150,000 dropped by about 200,000 tons to 3,002,947 Capital Budget 196,281 400,000 650,000 (see Figure 2). However, the Port still man- Total: $3,444,327 $5,280,923 $5,222,909 aged over 3 million tons in shipping for the second year in a row, an event not experienced since the 1960’s. This demonstrates the Figure 1 Port’s increasing health and importance to the transportation infrastructure in the re- Port of Milwaukee gion. The Port is continuing efforts to replace Operating Revenues and Expenditures low productivity tenants with higher produc- $4.5 tivity ones to take full advantage of Port properties and services. $4.0

$3.5 ACTIVITIES $3.0

• Market and promote Port facilities $2.5 (In Millions)

• Seek changes in federal laws to promote $2.0 regional trade • Provide complementary services $1.5 • Harbor equipment and vessels $1.0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 • Crane operation Revenues Expenses

OTHER ACTIVITIES AND CHANGES

Cruise Ships: For the past several years, the Figure 2 Port of Milwaukee has been working with international cruise ship owners to stimulate demand for Great Lakes based cruise ship Port of Milwaukee Tonnage Summary service and more particularly, to integrate 3,500,000 Milwaukee as a preferred cruise ship destina- tion on the Great Lakes. The German cruise 3,000,000 ship “c. Columbus” will be returning to the 2,500,000 Great Lakes in 2004 and will make four stops in Milwaukee during July and September. 2,000,000

Two voyages will be booked with European 1,500,000 passengers and two with North Americans. The latest cruise ship to enter the Great Lakes 1,000,000 market is the newly built “Orion,” which will 500,000 undergo its sea trial in Northern Europe this 0 fall. Four cruises will be offered by the 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Orion’s owners between Montreal, Canada and Milwaukee in 2004 for North American General Cargo Liquid Cargo Dry Bulk Grain passengers. The American Canadian Carib-

2004 PLAN AND BUDGET SUMMARY 153 PORT OF MILWAUKEE bean Cruise Line (ACCL) will again be scheduling Strong interest in recreating in Milwaukee has been four to five cruises in 2004 and will be making stops expressed by Western Michigan customers surveyed in Milwaukee. This will be the fourth year in a row by the Port. that ACCL ships will be calling Milwaukee. Cruise offerings continue to grow out of Milwaukee, in- Land Use: In 2004, the Port will continue to study creasing the city’s profile in the international cruise and evaluate alternative land uses for Port property market. in cooperation with the Department of City Devel- opment to convert vacant land to more productive High Speed Ferry: In 2003, the Port working with and economically beneficial uses. About 85% of Port Lake Express LLC, brought to fruition its long an- land is currently leased and the Port will help evalu- ticipated High Speed Ferry Project. The innovative ate the best uses for the remaining 15% that is va- new vessel, which will cross Lake Michigan between cant. Between 20 and 30 acres are available adjacent Milwaukee and Muskegon, Michigan in less than to the Kinnickinnick River, which could be used to two and one-half hours, will carry 46 autos and 250 expand Port operations or be redeveloped for mixed passengers. This vessel will be the first of its kind to commercial and residential or industrial uses. operate in the continental United States and will bring Milwaukee national and international recogni- Jones Island East Bank Public Fishing Project: The tion. The first cross lake voyage will take place in Port of Milwaukee, working with the Milwaukee June, 2004 when the company initiates its inaugural Metropolitan Sewage District (MMSD) and the De- service. The vessel will normally operate from May partment of Natural Resources (DNR), will be a 1st through December 31st each year and will make “project sponsor” to expand public access and fish- three round trips per day during the summer ing opportunities on Lake Michigan. The Port will months and two per day in May and the fall months. receive a DNR stewardship grant contract and receive reimbursement for incurred costs. The Port’s The Port has entered into a long term lease with special funds contain $137,500 in authority for this Lake Express and is in the process of developing a purpose. These funds are for reimbursement passenger terminal on Port property adjacent to the authority so that no actual city funds are used for the U.S. Coast Guard Base. The Port estimates based on project. information provided by the Convention and Visi- tors Bureau that the economic impact of the ferry on Milwaukee will be in excess of $26 million per year.

CAPITAL PROJECTS

Port Security: As a result of the events of 9/11, the Pier, Berth, and Channel Improvements: In 2004, Department of Homeland Security has directed in- the Port will use $1 million to maintain and improve creased port security regulations. Through the U.S. channel, berths, and piers on the South Harbor Track Coast Guard, the department has increased the in- of the Port. The Wisconsin Harbor Assistance Pro- tensity and volume of regulations with which the gram will cover $800,000 of the cost (80%) and the Nation’s ports and transportation systems must city will provide the remaining $200,000. cope. The Port of Milwaukee, along with each individual terminal operator, is working with local Coast Dockwall Rehabilitation: The Port maintains ten Guard officials in developing and implementing port miles of dockwall to serve its leased tenants. Reha- security plans. While not yet complete, it is certain bilitation is necessary to avert costly emergency re- that these plans will call for the Port to “harden” its pairs and disruptions to cargo operations. The Port facilities as a target, including restricting public ac- will spend $100,000 in 2004 for this purpose. cess, providing additional lighting, gating, fencing, and security personnel. The Coast Guard and Port Rail Track and Service Upgrades: Project funding are also developing contingency plans that escalate of $100,000 in 2004 is the city’s match for a Railroad preparedness and response with increased threat Grant Program run by the State of Wisconsin De- levels. The 2004 capital budget includes $250,000 for partment of Transportation. The upgrades to the rail Port security, along with an additional $250,000 system are necessary because of increasing rail car grant that was awarded to the Port this year. sizes, weights, and higher track and safety standards.

154 2004 PLAN AND BUDGET SUMMARY PORT OF MILWAUKEE

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 16.36 19.00 19.50 0.50 FTEs - Other 0.04 1.00 0.50 -0.50 Total Positions Authorized 35 34 33 -1 DLH - Operations and Maintenance 29,442 34,200 35,100 900 DLH - Other Funds 72 1,800 900 -900

EXPENDITURES Salaries and Wages $950,057 $1,054,393 $1,039,399 $-14,994 Fringe Benefits 379,513 390,125 384,578 -5,547 Operating Expenditures 958,476 753,805 778,831 25,026 Equipment 0 0 0 0 Special Funds 960,000 1,082,600 1,220,101 137,501 TOTAL $3,248,046 $3,280,923 $3,422,909 $141,986

REVENUES Charges for Services $3,453,522 $3,280,923 $3,422,909 $141,986 TOTAL $3,453,522 $3,280,923 $3,422,909 $141,986 CAPITAL PROJECTS - Includes $650,000 for the following projects: a. Port Security - $250,000 b. Dockwall and Breakwater Rehabilitation - $100,000 c. Pier, Berth, and Channel Improvements - $200,000 d. Rail Track and Service Upgrades - $100,000

ORGANIZATION CHART

Mayor

Board of Harbor Municipal Port Director Commissioners

Administration Marketing Engineering Operations

Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-25,710 Port Maintenance Worker I Elimination of vacant position.

0 1.50 Miscellaneous Adjustment

0 -0.50 Reduction in Capital Deduction

-1 0.50 -0.50 $-25,710 $0 TOTAL

2004 PLAN AND BUDGET SUMMARY 155 DEPARTMENT OF PUBLIC WORKS

EXECUTIVE SUMMARY

MISSION: To promote the health, safety, mobility, and quality of life for all City of Milwaukee residents and visitors by providing:

• Safe, attractive, and efficient surface infrastructure systems; • Solid waste collection, disposal, recycling, and waste reduction; • Safe, aesthetically pleasing, and sufficient drinking water; • Storm water and waste water conveyance; and • Support services and facilities for the Department of Public Works (DPW) and other city departments.

STRATEGIC Provide a transportation system that adequately balances the use of mass transit, automobiles, ISSUES: and other modes of transportation.

Improve the environment by reducing solid waste in landfills and reducing air and water pollution to federally required levels.

Improve the attractiveness and safety of neighborhoods in a way that enhances the identity of neighborhoods and attracts people to them.

Address regional problems at a regional level instead of at a local level.

INITIATIVES Continue to work with the state and county governments on major transportation projects, FOR 2004: including the Park East Freeway and Marquette Interchange.

Continue to realize more efficient and effective utilization of personnel resources in the Opera- tions and Infrastructure Division.

Improve operational efficiency by coordinating service delivery with other government entities.

Reduce plowing on non-arterial streets.

Work with other departments and local entities in developing Menomonee Valley.

BACKGROUND

The Department of Public Works was created in • Forestry Division; 1910. While the department’s activities have • Infrastructure Services Division; evolved through the years, the organizational struc- • Sanitation Division; and ture basically remained unchanged until 1996. As a result of the strategic planning process, the 1996 • Water Works Division budget restructured the Department of Public Works into the following divisions: As part of the 2002 budget, the Operations Division was created. This new division includes Sanitation, Forestry, and Buildings and Fleet. The 2004 budget • Administrative Services Division; includes a further restructuring of the DPW by con- • Buildings and Fleet Division;

156 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS

solidating Infrastructure’s Administration Figure 1 and Transportation Decision Units.

The operating and maintenance budget, ex- Department of Public Works Operating Budgets cluding the Water Works and Parking Funds, $115 for DPW operating divisions (in real dollars) has increased by only 3.5% since 1991 (see $110 . Figure 1). However, Figure 1 also indicates $105 that despite the decrease in the 2004 budget, Trend DPW’s budget has increased by 23% since $100

1996. Most of recent increases can be attrib- $95 uted to wage and salary settlements and in- (In Millions) creased funding for equipment replacement, $90 Real Dollars (1992 = 100) equipment maintenance, and repair. The $85 level of funding provided to the Department of Public Works demonstrates the city’s $80 commitment to delivering quality public $75 services to the community. 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

The reduction in DPW’s budget over the past two years represents a combination of efficiencies; In 2004, DPW will continue focusing on delivering from the reorganization of the Infrastructure and the high quality services that the citizens of Milwau- Operations Divisions and a reduction in state shared kee expect. DPW will use a combination of im- revenue. Despite this decrease in operating funds, proved efficiency, better utilization of technology, DPW’s budget is 7% greater than its average appro- and creative management to deliver services at a priation (in real terms) for the past 13 years. reduced cost.

OBJECTIVES

To help meet its objectives, the 2004 budget for the Department of Public Works operating divisions Table 1 includes operating and maintenance funding totaling Percentage of DPW Funding by Objective approximately $103 million, state and federal grant funding totaling approximately $51.8 million, and Objective capital funding totaling approximately $58.3 million. Drinking Water 6.9% Approximately $48.2 million in state and federal aid Sewer System Services 13.5% City Cleanliness 9.6% will be provided in 2004 for city infrastructure Parking Regulation and Compliance 11.5% needs. In addition, the Water Works 2004 budget Public Way Condition 16.6% includes $63.4 million in operating funds and $22.6 Building Services 7.6% million in capital funds. The Parking Fund’s 2004 Street Lighting and Playgrounds 3.8% budget includes approximately $38.5 million in op- Tree Mortality 3.0% erating funds and $6.3 in capital funds. The 2004 Snow and Ice Control 1.8% Communication Services 0.7% Sewer Fund’s budget includes approximately $24.2 Bridge Condition 5.3% million in operating funds and $21.5 million in capi- Traffic Accidents 1.0% tal funds. Boulevard Appearance 1.3% Water Distribution 15.7% Table 1 shows the percentage of DPW’s funding Solid Waste Reduction 1.7% allocated to each of its objectives. Aggregate fund- TOTAL 100.0% ing levels for each DPW objective are included in the Outcome Indicator and Funding Table at the end of garding the condition of boulevards and maintaining this section. In 2000, all divisions provided new city cleanliness as measured by the Photometric In- program result measures for their programs. In dex. DPW will continue to work on developing addition, some new outcome indicators were cre- meaningful data driven outcome measures for all of ated, including reduction of citizen complaints re-

2004 PLAN AND BUDGET SUMMARY 157 DEPARTMENT OF PUBLIC WORKS its objectives in order to enable policymakers to Cooperation Agreements with Other Government analyze program’s success. Detailed descriptions of Entities: As a result of efficiencies created, the For- individual objectives, including outcome history, estry and Sanitation Sections have been able to forge activities, and funding levels are included in each cooperation agreements with other local government division’s summary. entities. The department is also looking at other government entities to form partnership agreements ACTIVITIES that will be beneficial to the City of Milwaukee.

• Design, maintenance, and repair of 216 bridges Technology Improvements: DPW will continue its • Maintenance of 220 city owned buildings efforts to improve city administration and service delivery through the use and enhancement of tech- • Design, construction, and maintenance of streets, nology. In 2003, the city’s citation processing con- sewers, water facilities, alleys, sidewalks, and tractor issued a RFI to vendors for the development bridges of kiosks (ATM-like technology) to sell and disburse • Maintenance of city trees, boulevards, play- night parking permits as well as to pay parking cita- grounds, and parking lots tions. The intent is to have these machines located in • Collection and disposal of garbage and opera- any city facility as well as high traffic locations such tion of the City Recycling Program as UWM and Marquette University. These machines • Snow and ice control on city streets will provide a more convenient way to purchase • Design, construction, and maintenance of the night parking permits. DPW hopes to have a proto- street and alley lighting systems type available for demonstration by the end of 2003. • Traffic control through design, regulation, and control systems Menomonee Valley: DPW is in the process of developing plans to move the Tracer Yard operation to • Management of city parking operations another site. This move will serve as a catalyst to • Maintenance and service of the city owned redevelopment in the Menomonee Valley. automobile and construction equipment fleets • Implementation of kiosks. (Three qualified ven- Conduit and Fiber: As a result of the impending dors have responded and are currently negoti- rebuilding of the Marquette Freeway, Infrastructure ating with the city’s contractor) Services and Administrative Services will be re- • Operation of the city water utility quired to reroute the city conduit and fiber. The • Maintenance of the city’s sewer system State of Wisconsin has allocated $900,000 to assist in this move. PROGRAM CHANGES The details of these and other changes are explained The 2004 budget reflects several program changes in more detail in the associated sections of the 2004 for the Department of Public Works. The majority of Plan and Budget Summary. program changes are discussed in detail in the division summaries. The following are highlights of departmental wide changes.

CAPITAL PROJECTS

The 2004 capital improvements budget for the De- and sewer systems. More detailed discussions of partment of Public Works totals approximately capital projects are included in division summaries, $108.7 million (including Water, Parking, and Sewer as well as the “Capital Improvements Funds” section Capital Funds). Major DPW capital projects include of the 2004 Plan and Budget Summary. street resurfacing and reconstruction, facilities maintenance and repair, and maintenance of the water

158 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS

OUTCOME INDICATORS AND FUNDING

2002 2003 2004 Experience Budget Projection Objective 1: Public Way Condition

Outcome Indicator: Street Pavement Condition Index. 6.0 6.3 6.0 Alley Condition Index. 74 74 74

Funding by Source: Operating $11,187,653 $11,001,793 $10,530,320 Capital 17,649,976 23,591,116 15,620,339 Grant 6,116,730 28,106,580 38,185,745

Total: $34,954,359 $62,699,489 $64,336,404

Objective 2: Bridge Condition Outcome Indicator: Percentage of bridges rated above a 87.2% 85.2% 88.0% condition rating of 50.

Funding by Source: Operating $5,835,297 $6,016,968 $5,607,173 Capital 3,441,628 2,144,645 5,678,472 Grant 1,798,382 7,911,000 9,117,236

Total: $11,075,307 $16,072,613 $20,402,881

Objective 3: Street Lights and Playgrounds Outcome Indicator: Percentage of streets meeting IES 97.9% 94.0% 98.0% standards. Citizen satisfaction rating for 0 70 0 playgrounds.

Funding by Source: Operating $7,144,584 $8,511,289 $9,932,889 Capital 5,911,176 6,433,837 4,869,135 Grant 394,538 77,370 49,000

Total: $13,450,298 $15,022,496 $14,851,024

Objective 4: Boulevard Appearance Outcome Indicator: Reduce the number of citizen 31 40 50 complaints regarding the condition of boulevards to less than 50 per year*.

Funding by Source: Operating $4,823,302 $4,661,239 $4,535,983 Capital 564,676 770,216 473,972

Total: $5,387,978 $5,431,455 $5,009,955

2004 PLAN AND BUDGET SUMMARY 159 DEPARTMENT OF PUBLIC WORKS

2002 2003 2004 Experience Budget Projection

Objective 5: Tree Mortality

Outcome Indicator: Tree mortality rate. 1.7% 2.0% 2.0%

Funding by Source: Operating $8,682,207 $10,351,137 $10,377,973 Capital 792,659 1,047,710 1,281,070

Total: $9,474,866 $11,398,847 $11,659,043

Objective 6: Water Distribution Outcome Indicator: Percentage of main breaks back in 0 95 0 service within 24 hours.

Funding by Source: Operating $0 $1,252,783 $1,182,008 Capital 0 11,600,000 20,920,000 Water Works 0 36,939,591 38,929,225

Total $0 $49,792,374 $61,031,233

Objective 7: Snow and Ice Control Outcome Indicator: Pounds of salt spread per street lane 252 250 250 mile.

Funding by Source: Operating $4,478,382 $7,398,890 $5,990,847 Capital 135,963 887,149 997,000

Total: $4,614,345 $8,286,039 $6,987,847

Objective 8: Traffic Accidents Outcome Indicator: Reduce the number of traffic accidents 13,592 12,958 13,000 by 5%.

Funding by Source: Operating $3,345,143 $4,822,084 $2,843,112 Capital 844,277 1,064,408 1,079,603

Total: $4,189,420 $5,886,492 $3,922,715

Objective 9: Solid Waste Reduction Outcome Indicator: Residential solid waste land filled per 669 700 700 capita (lbs.).

Funding by Source: Operating $4,612,269 $4,220,699 $3,069,801 Capital 140,028 465,508 336,000 Grant 2,800,636 2,814,641 3,029,432

Total: $7,552,933 $7,500,848 $6,435,233

160 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS

2002 2003 2004 Experience Budget Projection

Objective 10: Drinking Water Outcome Indicator: Percent compliance with Safe Drinking 100 100 100 Water Act standards.

Funding by Source: Operating $1,767,231 $814,638 $767,867 Capital 9,902,983 3,300,000 1,700,000 Water Works 50,533,642 23,978,988 24,505,981

Total: $62,203,856 $28,093,626 $26,973,848

Objective 11: City Cleanliness Outcome Indicator: Maintain the overall cleanliness of the 5.83 6.00 6.00 city as measured by the Photometric Index.

Funding by Source: Operating $39,025,011 $36,264,183 $34,948,071 Capital 1,479,327 2,705,660 2,020,341 Grant 299,147 282,750 282,750

Total: $40,803,485 $39,252,593 $37,251,162

Objective 12: Sewer System Services

Outcome Indicator: Sewer service back-ups. 58 45-55 45-55 Street flooding incidents. 2,728 5,000 3,000

Funding by Source: Operating $2,496,708 $2,259,593 $2,236,044 Capital 19,853,496 23,159,000 26,000,000 Grant 222,661 132,905 100,000 Sewer Maintenance Fund 20,167,856 26,382,275 24,165,233

Total: $42,740,721 $51,933,773 $52,501,277

Objective 13: Building Services Outcome Indicator: Percentage of city buildings with 60.0% 75.0% 83.0% condition assessments.

Funding by Source: Operating $13,117,330 $11,489,241 $10,077,309 Capital 5,727,275 21,694,720 19,583,556

Total: $18,844,605 $33,183,961 $29,660,865

2004 PLAN AND BUDGET SUMMARY 161 DEPARTMENT OF PUBLIC WORKS

2002 2003 2004 Experience Budget Projection

Objective 14: Communication Services Outcome Indicator: 95.0% 90.0% 90.0% Percentage of customers satisfied with communication services.

Funding by Source: Operating $998,671 $128,235 $155,389 Capital 780,215 1,388,421 1,814,762 Grant 0 0 900,000 Sewer Maintenance Fund 17,619 165,784 0

Total: $1,796,505 $1,682,440 $2,870,151

Objective 15: Parking Regulation Outcome Indicator: Percentage change in net operating 3.1% 29.0% 0.0% revenue.

Funding by Source: Operating $738,442 $760,095 $746,346 Capital 0 1,661,000 1,305,900 Parking Fund 32,571,927 35,726,797 38,500,225

Total: $33,310,369 $38,147,892 $40,552,471

Note: Objective funding does not include Parking capital improvements funded from the Permanent Reserve Fund.

ORGANIZATION CHART

Commissioner of Public Works*

Leadership Team

Infrastructure Services Water Works Operations Administrative Services Director* Director* Director* Director*

Environmental Services Superintendent* Buildings and Fleet Superintendent*

* Positions included in Department of Public Works Leadership Team.

162 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED PERSONNEL* FTEs - Operations and Maintenance 1,757.96 1,883.87 1,800.00 -83.87 FTEs - Other 424.64 450.78 441.29 -9.49 Total Positions Authorized 4,141 4,063 3,509 -554 DLH - Operations and Maintenance 3,126,223 3,390,906 3,240,000 -150,906 DLH - Other Funds 764,347 811,404 794,322 -17,082 EXPENDITURES GENERAL CITY PURPOSES Administrative Services $4,676,074 $4,856,904 $4,553,338 $-303,566 Infrastructure Services 22,061,243 23,748,383 22,476,509 -1,271,874 Operations 81,514,913 81,347,580 75,971,287 -5,376,293 SUBTOTAL-GENERAL CITY PURPOSES $108,252,230 $109,952,867 $103,001,134 $-6,951,733

WATER WORKS (Public Utility) Operating Budget $50,533,642 $60,918,579 $63,435,206 $2,516,627 Capital Improvements Program 9,902,984 14,900,000 22,620,000 7,720,000

TOTAL WATER WORKS** $60,436,626 $75,818,579 $86,055,206 $10,236,627

PARKING BUDGET Operating and Maintenance Budget $24,416,376 $27,426,797 $26,500,225 $-926,572 Capital Improvements 832,348 1,661,000 1,305,900 -355,100 Addition to Parking Reserves 4,983,469 0 0 0 Transfer to the General Fund 8,250,000 8,300,000 12,000,000 3,700,000 Capital Improvements to be Financed from Permanent Improvement Reserve Fund - Parking 0 5,000,000 5,000,000 0

TOTAL PARKING BUDGET $38,482,193 $42,387,797 $44,806,125 $2,418,328 SEWER MAINTENANCE FUND Operating and Maintenance Budget $20,167,832 $26,548,059 $24,165,233 $-2,382,826 Capital Improvements 16,288,590 19,700,000 21,500,000 1,800,000 TOTAL SEWER FUND BUDGET $36,456,422 $46,248,059 $45,665,233 $-582,826 GRAND TOTAL-DEPARTMENT OF PUBLIC WORKS $243,627,471 $274,407,302 $279,527,698 $5,120,396

* Personnel totals reflect Operating Divisions, Water Works, Sewer Maintenance Fund, and Parking Fund. ** Does not include retained earnings.

2004 PLAN AND BUDGET SUMMARY 163 DEPARTMENT OF PUBLIC WORKS

OPERATING BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED PERSONNEL Maintenance 1,205.29 1,273.15 1,204.28 -68.87 FTEs - Other 388.55 403.88 394.86 -9.02 Total Positions Authorized 3,432 3,344 2,820 -524 DLH - Operations and Maintenance 2,147,591 2,291,610 2,167,704 -123,906 DLH - Other Funds 699,390 726,984 710,748 -16,236 EXPENDITURES Salaries and Wages $53,923,985 $54,627,640 $51,174,004 $-3,453,636 Fringe Benefits 20,218,944 20,212,227 18,934,382 -1,277,845 Operating Expenditures 31,499,556 33,305,603 30,849,979 -2,455,624 Equipment 2,609,745 1,805,897 2,042,769 236,872 Special Funds 0 1,500 0 -1,500 TOTAL $108,252,230 $109,952,867 $103,001,134 $-6,951,733

REVENUES Charges for Services $31,732,144 $29,483,101 $29,568,700 $85,599 Licenses and Permits 1,271,960 1,033,800 1,131,800 98,000 Miscellaneous 241,518 242,100 220,000 -22,100 TOTAL $33,245,622 $30,759,001 $30,920,500 $161,499

CAPITAL PROJECTS - Capital funds in Administration, Infrastructure, and Operations total $58,254,250 in city funds, plus an additional $48,202,981 in state and federal grant and aid funding.

164 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS ADMINISTRATIVE SERVICES DIVISION

EXECUTIVE SUMMARY

STRATEGIC Provide administrative support, guidance, and direction for all of the department’s strategic ISSUES: issues. These strategic issues are specified in the Department of Public Works Summary.

INITIATIVES Continue to enhance the Call Center application to improve routing, tracking and response FOR 2004: times for service requests received through the Call Center.

Continue to develop and enhance Department of Public Works computer applications.

Install the city’s new telephone switch.

Implement a joint management/union review of employee accidents.

BACKGROUND

The Administrative Services Division provides plan- division. In 1998, these activities were consolidated ning and support to the Department of Public Works within the Administrative Services Division. (DPW) in a variety of areas. The administrative functions including, budget preparation and control, The Administrative Services Division’s 2004 budget accounting, payroll, human resources, employee includes operating funds totaling $4.6 million. Most safety, contract administration, purchasing and in- of the division’s activities serve to support the ef- ventory, communications, special event permitting, forts of other DPW divisions to achieve their objec- technology support, and the Call Center operation tives. Therefore, costs of the Administrative Serv- were formerly provided by each individual service ices Division’s activities are distributed across all DPW objectives.

ACTIVITIES

• Administrative management and coordi- Figure 1 nation • Planning, budgeting, payroll, and accounting 2002 Call Center Service Requests by Type • Contract administration • Public information and special event Other Sanitation 4.00% permits Special Pickup 70.34% • Personnel administration Street Maintenance 1.53% • Call Center operation

• Inventory management Other • Safety Program 0.01% Forestry • Technology support services 5.99% • Parking Fund administration and management Garbage/ Recycling Carts 18.13%

2004 PLAN AND BUDGET SUMMARY 165 DEPARTMENT OF PUBLIC WORKS - ADMINISTRATIVE SERVICES DIVISION

PROGRAM CHANGES there were 2,520 requests received through the citizen service application. Through July 2003, there Call Center: In 2002, the number of service requests have been 3,030 requests. processed through the Call Center totaled 171,569, a 4% increase from 2001. Of these service requests, Community Safety Wide Area Network: DPW 64% were dispatched to field locations for resolution Administrative Services Division provides local and and 36% were resolved immediately upon receipt by wide area network planning, designing, engineering, the Call Center staff. As Figure 1 shows, the major- installation, maintenance, and support for the Police ity of service requests are for special pickup of items and Fire Departments, all major DPW facilities in- such as appliances, brush, and furniture. For the cluding Water Works, all health centers, some li- first time in 2002, the Call Center staff began proc- braries, the Department of Neighborhood Services, essing street maintenance requests, which represent and numerous unique operations. less than 2% of all requests. Street lighting service requests were also added to the Call Center applica- In 2002, the most critical portion of the network be- tion in late 2002. came operational. This portion of the network is referred to as the Community Safety Wide Area As an additional aspect to the Call Center Program, Network (CSWAN). This network requires DPW to DPW Administrative Services and Sanitation have provide rapid response due to the critical public developed a new program called SanScan. When a safety requirements for voice, radio, video, and data service request is received by the Call Center and over multiple high speed communication links. The entered into the system, the program will separate network is designed for near 100% reliability critical the information by geographic area and other cate- to the Police and Fire Departments’ ability to pro- gories as defined by Sanitation. The south area of vide community safety. Sanitation has been operating SanScan since July, 2003. It is expected that the remaining areas (central In 2003, the department completed two major and north) will be operational by the fall of 2003. CSWAN projects. The two largest projects consisted of network upgrades for the Fire Department and Prior to implementation of SanScan, Sanitation dis- Water Works. The Fire Department, which was the tricts received many service requests directly. This largest of the projects, required installation of 80 information was not entered into the Call Center distribution ports in 10 different sites across the city. database put processed manually. Under this pro- The Water Works’ project required installation of 10 gram, all sanitation related service requests will be distribution ports at 5 locations and a total of 432 processed through the Call Center. Calls for service 10/100 ports at 7 water sites. In addition, Water will be redirected to the Call Center although some Works has set up on their own VLAN and IP Subnet. may need to be received by the districts directly, As a result, the network traffic from Water Works is namely internal calls from other city departments, kept separate from other city departments. employees, elected officials, aldermanic aides, or calls transferred from the Call Center for services or Computer Application Development: In 2004, the questions they are unable to process. Technology Support Services Section will continue maintenance, support, and development of the DPW Sanitation Managers utilize the Call Center Program Call Center application, CityTime (timecard entry), to track, route, and prioritize service requests, gen- e-government initiatives, DPW’s internal In- erate work sheets for the field crews, and eliminate voice/Accounts Receivable Program, and DPW fa- duplicate requests. With this data, management is cility databases and work management systems. able to analyze productivity, response times, and route schedules as well as quantify the number and Currently, DPW is in the process of creating a data- type of requests in order to provide services more base driven adjustments panel to greatly reduce the efficiently and effectively. manual paperwork the payroll clerks do to record pay adjustments. Working with the Comptroller’s A public interface to the Call Center Program has Office, DPW plans to implement electronic submis- been placed on DPW’s web page so citizens can re- sion of “timecard adjustments” through CityTime quest services through the Internet. To maintain instead of the current paper process. The current production data integrity, a Call Center Manager process allows for significant errors, many of which must approve these service requests before they are could have been prevented with an adjustment forwarded to the appropriate division. In 2002, module.

166 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS - ADMINISTRATIVE SERVICES DIVISION

By the end of 2003, the department plans to replace released until early 2003. Consequently, installation the apartment garbage billing system, currently run- is not expected until 2004. In 2003, DPW contracted ning on paradox. This will allow apartment garbage with a consultant to prepare a report on the re- billings to be integrated with DPW’s In- placement of the telephone switch that will guide the voice/Accounts Receivable Program. In addition, city as it prepares either an RFP or bid to replace the there will be development of a system to track DPW system, establish a timeline for replacement, identify issued tax roll charges. Currently, this information core and optional features, and determine the re- is scattered throughout the department and consoli- quirements for the communications infrastructure. dation will enable more accurate information to be In addition, DPW conducted a survey of telephone given to title companies and residents. users to assess current usage of the telephone system and desired features. This information was incorpo- In early 2004, DPW will complete an application to rated into the consultant report. The total amount of replace the mainframe based “roadlife” database, time that will be needed to complete the installation which tracks the street infrastructure installed, of the new system is estimated to be five months. owned, and maintained by the city. In addition, DPW is developing an application to track the cop- Safety Program: Along with training, site inspec- per telecommunication infrastructure installed, tions and evaluation of the OSHA 300 Logs, the owned, and maintained by the city. Information Safety Section will implement an Accident Review about the thousands of conductors (wires) in hun- Committee in 2004. This process will involve con- dreds of cables is currently maintained in a large sultation with employees who have three or more manual ledger, called the “cable book”. This elec- accidents a year. The consultation, which will in- tronic cable book will be an important tool in the clude management, the union, and the employee will relocation of circuits resulting from the reconstruc- be a fact-finding session to assist the Safety Section tion of the Marquette Interchange. The department in finding ways to make the employee’s job safer. In also plans to use this database to collect information the 2004 budget, one position of Safety Specialist about private entities that lease city conduits. This Senior is eliminated, saving approximately $39,000 in will facilitate a more accurate billing of these entities. capital fundings. And lastly, DPW will develop a Salt Inventory Pro- gram that will be available to all eight salt storage Other Position Changes: The 2004 budget includes sites. It is anticipated that this program will be the elimination of three operating funded positions completed by the 2003-2004 snow season. an Office Assistant III, an Administrative Assistant I, and an Engineering Drafting Technician IV for sav- Replacement of the Telephone Switch: Although ings of $113,120. In addition, one non-operating funding was provided for replacement of the mu- funded Personnel Payroll Assistant position is elimi- nicipal telephone switch in 2002, the funding was not nated.

CAPITAL PROJECTS

Public Safety Communications: The 2004 capital construction of the Marquette Interchange. This budget includes $626,000 to interconnect the major- project will be done to ensure that there are no dis- ity of the city’s 200 buildings to a Wide Area Net- ruptions to any of the city’s critical services. In addi- work (WAN) for telephone and data communication, all other major street paving projects involving tions. the installation of fibers will continue.

During 2004, the department will begin planning and design for relocation of the fiber due to the re-

2004 PLAN AND BUDGET SUMMARY 167 DEPARTMENT OF PUBLIC WORKS - ADMINISTRATIVE SERVICES DIVISION

BUDGET SUMMARY CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 65.91 56.90 54.38 -2.52 FTEs - Other 5.77 8.10 6.12 -1.98 Total Positions Authorized 73 69 64 -5 DLH - Operations and Maintenance 96,699 102,420 97,884 -4,536 DLH - Other Funds 10,383 14,580 11,016 -3,564

EXPENDITURES Salaries and Wages $2,673,774 $2,693,429 $2,649,106 $-44,323 Fringe Benefits 980,203 996,569 980,169 -16,400 Operating Expenditures 955,973 1,110,406 873,063 -237,343 Equipment 66,124 55,000 51,000 -4,000 Special Funds 0 1,500 0 -1,500 TOTAL $4,676,074 $4,856,904 $4,553,338 $-303,566

REVENUES Charges for Services $1,350,342 $819,000 $826,500 $7,500 Licenses and Permits 1,271,960 1,033,800 1,131,800 98,000 TOTAL $2,622,302 $1,852,800 $1,958,300 $105,500

CAPITAL PROJECTS - Includes $626,000 for Public Communications.

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason Administrative Services -1 -1.00 $-34,183 Personnel Payroll Assistant

-1 -0.52 $-31,630 Office Assistant III Positions vacant; duties -1 -0.98 $-38,634 Safety Specialist Sr consolidated into other positions. -1 -1.00 $-45,145 Engineering Drafting Technician IV

-1 -1.00 $-32,615 Administrative Assistant I -5 -2.52 -1.98 $-109,390 $-72,817 TOTAL

168 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS INFRASTRUCTURE SERVICES DIVISION

EXECUTIVE SUMMARY

STRATEGIC Provide a transportation system that efficiently distributes travel between mass transit, auto- ISSUES: mobiles, and other modes of transportation.

Increase accessibility to employment throughout the region.

Improve air and water quality to meet federal requirements.

Improve the attractiveness of neighborhoods.

INITIATIVES Continue with the completion of local street improvements to replace the Park East Freeway FOR 2004: spur.

Proceed with the extension of West Canal Street from North 25th Street to Miller Park.

Continue to implement the Downtown Pedestrian Corridor Plan and continue involvement in the Downtown Connector Study.

Enlist private developers to perform design and engineering work for development projects.

Represent city interests in the design of the Marquette Interchange.

Consolidate the management of the Administration and Transportation Units.

Consolidate all bridge design engineering functions with maintenance activities under a single manager in the Streets and Bridges Unit of the Operations Section.

Consolidate all major street design engineering with the local street and alley designers under a single manager in the Construction Unit of the Operations Section.

BACKGROUND Figure 1

The Infrastructure Services Division is responsible for design, construction, and main- Sources of Capital Funding tenance of the city’s infrastructure systems, including streets and alleys, bridges, sewers, Revenue Assessment 1.3% sidewalks, traffic control devices, street 11.1% lights, and underground conduits. In addition, the division coordinates transportation City Funding 37.2% improvements with other governmental agencies and railroad companies. The division also undertakes engineering studies and investigates various permits, plans, and easements.

Grant and Aid In 2004, the Infrastructure Services Division 50.4% will devote approximately $22.5 million in

2004 PLAN AND BUDGET SUMMARY 169 DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION operating funds and $30.6 million in capital funds. Although the Infrastructure Services Division re- In addition, $48.2 million in state and federal aid ceives a significant amount of grant and aid, these assists in funding the city’s infrastructure needs to funds are used primarily for two capital programs: this mission. The primary sources of capital funding the Major Bridge Program and the state and federal (see Figure 1) are the city’s property tax and federal aided Major Street Improvements Program. Grant and state grants and aid, which together constitutes and aid funds constitute 62% of the Bridge Program 87.6% of infrastructure’s capital budget. Other and 83% of the Street Program, enabling the city to sources of funding include special assessments and better preserve and maintain its street and bridge revenue. systems, critical components of the overall infrastructure system.

DPW OBJECTIVE 1

Ensure that the surface transportation sys- Figure 2 tem provides a safe, attractive, and efficient means to maintain the economic vitality of the city, complement land use development, 2002 Condition Rating of Local Streets serve the needs of the business community, and preserve residents quality of life by 20.0% maintaining a Pavement Quality Index of 17.5% 6.0 and an Alley Condition Index of 74 in 15.0% 2004. 12.5%

OUTCOME HISTORY (see page 159) 10.0%

7.5%

Many of Infrastructure Services Division’s Percentage of Streets 5.0% activities are designed to improve the condition of the city’s surface public ways, primar- 2.5% ily streets and alleys. Activities include re- 0.0% surfacing or reconstructing existing pave- 2.0-2.9 3.0-3.9 4.0-4.9 5.0-5.9 6.0-6.9 7.0-7.9 8.0-8.9 9.0-10.0 ment, curbs and gutters, and constructing Pavement Quality Index new streets as part of residential, commercial, and industrial development. The 2004 gory has a minimum acceptable PQI. A rating below budget includes approximately $10.5 million in op- the minimum indicates that the street segment re- erating funds and $53.8 million in capital and grant quires rehabilitation or reconstruction. Based on funds for this objective. This level of funding will previous street condition and age data and older, pave 11.23 miles of arterial, collector and local less sophisticated versions of a Pavement Manage- streets, and 3.8 miles of alleys. ment System (PMS), minimum PQI’s of 4.0 for locals and 5.5 for collectors/arterials were established. The Maintaining safe and efficient surface public ways minimum PQI level for collectors/arterials was es- furnishes residents with access to employment, tablished at a higher level than that of the locals be- goods and services, and also provides a way for cause of their greater importance to a larger popula- businesses to transport goods to their customers. tion. Pavement condition is measured through a Pave- ment Quality Index (PQI), which rates street condi- To the degree possible with computer modeling, the tions on a scale of 2 to 10 based upon visual observa- PMA is now predicting pavement quality and life, tions, historic records, and non-destructive testing and the need for repair more accurately. PMA will on non-residential streets. Figure 2 represents the be utilized to formulate the initial annual prelimi- state of the system as of 2002 for those streets that nary paving program and as a basis in formulation are city maintained. and updating of the local and the major six year paving programs. Time and monitoring of PMA PQI ratings are calculated for two general street outputs compared to actual field conditions will be categories: locals and collector/arterial. Each cate-

170 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

the ultimate indicator of the system’s accuracy and • Pothole patching value. • Surface patching Infrastructure Services has also collected data to • Sidewalk replacement develop a similar condition index to evaluate the condition of alley pavement. Infrastructure Services • Bicycle Task Force will use the knowledge gained from working on the • Bicycle, Transit, and Rideshare Enhancement Street Pavement Management Program to monitor Program the quality of the city’s alley system. PROGRAM CHANGES Although pavement condition is a critical outcome measure, maintaining pavements in an acceptable Canal Street: In 2004, the Canal Street reconstruc- condition is not the only objective for Infrastructure tion and extension will be the largest of Infrastruc- Services’ street, alley, and sidewalk programs. ture’s projects. This project, which began in 2003, These programs are also intended to improve and when completed will extend Canal Street from Sixth maintain the livability of city neighborhoods while Street to Miller Park. It is one of the very early and reducing the environmental impact of the automo- vital keys to the economic development that is bile. Progress toward meeting these goals is more planned for the Menomonee Valley. Over $14 mil- difficult to measure, as these goals are more intangi- lion is budgeted for this project in 2004. ble than the actual physical condition of pavements. However, the division supports these goals in two Combining DPW Stores: In 2004, the Infrastructure ways: Services and Buildings and Fleet stores will be combined. As a result one vacant position will be elimi- 1. The division uses paving projects to increase city nated in Infrastructure Services. The combining of green space. In conjunction with the city’s Street these stores will result in savings of approximately Paving Program, the Infrastructure Services Di- $75,737. It will also allow DPW to reduce duplica- vision determines whether the borders for trees tion of services that comes as a result of operating and boulevards can be increased, thereby im- two facilities. proving the quality of the city’s public spaces. Reorganization: The Administration Section will be 2. The division encourages the use of alternative combined with the Transportation Section thus modes of transportation. By enhancing pedes- eliminating the Administration and Projects Man- trian and bicycle mobility in neighborhoods, re- ager position. The Transportation Design Manager liance on the automobile is lessened. This, in position is anticipated to become vacant due to a turn, contributes to reduced traffic congestion year end retirement and will be filled by the current and enhanced air quality. Spending on alterna- Administration and Design Manager. A Public tive modes of transportation includes funding Works Inspector II, and a vacant, unfunded Engi- earmarked for sidewalk and handicap pedes- neering Systems Specialist are being eliminated trian ramps, bicycle lanes, transit, and other along with an Office Assistant II from the Construc- clean air activities. The division continues to tion Unit who will be moved to the Administration seek external funding sources for this purpose. Unit.

ACTIVITIES In the Transportation Unit, two Engineering Techni- cian II’s are eliminated, one in the Project Program- • Street Paving Program ming area and one in Traffic and Lighting. An Engi- • State and/or federal paving neering Technician IV in the Traffic and Lighting • Reconstruction and resurfacing Design Unit and a Civil Engineer II in Planning and Development are also being eliminated. The duties • New street construction of these four positions will be absorbed by other • Developer financed new street construction positions within these areas. A Management Civil • Street maintenance Engineer Senior position and two additional Civil • Crack filling and repairing Engineer II’s from the Major Projects area are also • Pothole patching being eliminated. The remaining 13 positions in the Major Projects area will be reassigned to the Con- • Seal coating struction Unit. A Civil Engineer IV position cur- • Alley resurfacing and reconstruction rently in the Structural Design area will be reas- • Alley maintenance signed to the Construction Decision Unit to serve as

2004 PLAN AND BUDGET SUMMARY 171 DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION the new Lead Supervisor over the 13 former posi- will be combined with the Infrastructure Services tions from the Major Projects area. The four re- Administration Unit. In the Support Services Unit, maining work areas in the Transportation Unit (Proj- the consolidation of the stores area with the stores ect Programming, Traffic and Lighting, Planning and area in Buildings and Fleets results in a net reduction Development, and Central Drafting and Records) of one Inventory Assistant II.

DPW OBJECTIVE 2

Provide safe and efficient infrastructure systems by maintaining 88% of bridges at a Figure 3 condition rating greater than 50 in 2004. Percentage of Bridges with Condition OUTCOME HISTORY (see page 159) Rating Greater than 50

As part of its efforts to provide safe and effi- 88.0% cient public ways, the Infrastructure Services 86.0% Division operates and maintains the city’s 216 84.0% bridges. The purpose of the bridge program is to preserve and maintain a bridge system 82.0% that meets the needs of the city, ensure the 80.0% safety of motorists and provide for efficient 78.0% movement of vehicles, people, and commodi- 76.0% ties. The 2004 budget includes operating 74.0% funding of $5.6 million, capital funding of 72.0%

$5.7 million and $9.1 million in grant funding 70.0% for this objective. 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Infrastructure Services measures the condition of bridges using a sufficiency condition PROGRAM CHANGES rating ranging from 0 to 100. Ratings are conducted every two years through mandatory physical bridge Consolidation of Bridge Maintenance and Eng i- safety inspections. In 2002, 87.2% of the rated neering: As part of the restructuring that will occur bridges had a sufficiency rating above 50. As Figure in 2004, the Structural Design Section of the Trans- 3 shows, since 1992 bridge condition ratings have portation Decision Unit is moved to the Street and steadily improved indicating the division is main- Bridges Decision Unit. This change included mov- taining bridges at a satisfactory level. ing the following positions: one Civil Engineer IV, two Civil Engineer II’s, four Civil Engineer II’s, one ACTIVITIES Engineering Drafting Technician IV, one Auxiliary Civil Engineer I; and the creation of a Bridge Design • Bridge Reconstruction Program Manager position. It also involves the elimination of • Bridge repair and maintenance one Civil Engineer IV and one Civil Engineer V. • Operation of the city’s movable bridge system, This reorganization will consolidate all bridge engi- including automated openings neering design functions and bridge maintenance activities under the same decision unit.

DPW OBJECTIVE 3

Maintain the livability of city neighborhoods by OUTCOME HISTORY (see page 159) ensuring that 98% of streets meet IES lighting standards in 2004. The purpose of the Infrastructure Services Division’s Street Lighting Program is to provide residents with pleasant and secure neighborhoods by providing a

172 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

safe and reliable lighting system. The 2004 Figure 4 budget includes operating funding of $9.9 million for this objective. In addition, $4.9 million in capital and $49,000 in grant fund- Percentage of Lighted Streets ing is provided. Meeting IES Standards 99.0%

The measurement for this objective is a scale 97.9% 98.0% 97.6% 97.7% developed by the Illuminating Engineering 97.3% 97.1% Society (IES) which establishes optimal levels 97.0% of lighting for streets. As shown in Figure 4, 96.0% the division continues to improve the per- 95.5% centage of streets meeting IES standards. In 95.0% 95.0% 2002, 97.9% of the lighted streets in the city 95.0% 94.0% met or exceeded IES standards. This repre- 94.0% sents approximately 1,288 miles of lighted streets. 93.0%

92.0% ACTIVITIES 1994 1995 1996 1997 1998 1999 2000 2001 2002

• Lighting system operations This change will result in the elimination of a City • Street lighting repair Laborer and one Electrical Worker. Savings of • Replacing series circuitry with multiple circuitry $86,000 will occur as a result of this change. Infra- to improve reliability and flexibility structure Services currently does lamp replacement • Converting mercury vapor and incandescent on a regular schedule. In 2004, Infrastructure will do lighting to more efficient high pressure sodium lamp replacement on an as needed basis. lighting • Capital Improvements Crew Elimination: In the 2004 budget, one Pole • Replace deteriorated poles Crew and one Cable Paving Crew is eliminated. These changes will result in the elimination of six • Replace defective underground cable positions and savings of approximately $191,000. • Replace and repair substations The elimination of these crews will result in delays • Business improvement district, neighborhood in finishing projects. association and commercial area pedestrian level lighting Position Changes: In the Electrical Services Decision Unit, other reductions include two positions in the PROGRAM CHANGES Sign Shop, nine positions on miscellaneous crews and three positions that respond to electrical outages Group Lamp Replacement: In 2004, the Group and problems. Lamp Replacement Program will be eliminated.

DPW OBJECTIVE 8

Design and operate transportation systems, which Streets and Highways and the American Association support the safe and efficient movement of people of State Highway and Transportation Officials in and goods, and maintain the economic viability of order to maintain consistent traffic control design the city by reducing the number of traffic crashes standards and facilities. Uniformity in design stan- by 5% in 2004. dards maintains roadway safety and increases recognition and compliance with traffic control facili- OUTCOME HISTORY (see page 160) ties, including traffic signals, signal systems, and traffic signs by system users. The Infrastructure Services Division follows the Manual of Uniform Traffic Control Devices for The Traffic Control Facilities Program provides for the safe, efficient, and economical movement of the

2004 PLAN AND BUDGET SUMMARY 173 DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION public and their goods and services, which helps to improve traffic flow, reduce pollution, and promote the health and safety of Figure 5 residents and visitors. The 2004 budget provides funding of $2.8 million in operating funding for this objective. In addition, $1.1 Number of Traffic Crashes* million in capital funding is devoted to this 20,000 objective. 18,000

16,000 While factors outside of Infrastructure’s con- 14,000 trol, such as enforcement of traffic regulations by the Police Department and changes 12,000 in traffic patterns resulting from economic 10,000 development, influence the number of traffic 8,000 crashes, the division’s activities do affect 6,000 traffic safety. As shown in Figure 5, the 4,000 number of traffic accidents in 2002 decreased 2,000 to 13,592, a 26% decrease since 1990. While 0 part of the reduction in crashes results from a 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 change in the State Division of Motor Vehi- * Does not include non-reportable crashes cles’ reporting requirements, enhanced enforcement of traffic laws have also contributed to the ACTIVITIES decline in crashes. • Traffic control facilities Although the primary purpose of this program is to • Install new traffic control facilities improve the safety and efficiency of public ways, • Modify or upgrade existing traffic control another important outcome is to reduce the envi- facilities ronmental impact of the automobile. While more • Timing of traffic signals difficult to measure, the division does conduct traffic • surveys every two years to measure the number of Repair of traffic signals persons per automobile entering and leaving down- • Review land use access needs town between 7 a.m. and 7 p.m. The goal is to in- • Participate in the Milwaukee Safety Commission crease the number of persons per automobile • Meter installation • Traffic pattern analysis

DPW OBJECTIVE 14

Provide quality support services by satisfying 90% capital funding and $900,000 of grant funding from of customers with internal communication services the State of Wisconsin. These funds will be used to in 2004. reroute conduit during the reconstruction of the Marquette Interchange. OUTCOME HISTORY (see page 162) Although the Infrastructure Services Division de- The underground conduit system is designed and signs and maintains the conduit, the Administrative maintained by the Infrastructure Services Division Services Division funds and provides staff for the and provides a secure and weatherproof means of actual operation of the communications services connecting communication cables among various services. city departments, including the Fire Department, Police Department, Health Department, Milwaukee ACTIVITIES Public Library, Milwaukee Water Works, and the Department of Public Works. The conduit system • Install and replace underground communication also provides a reliable route for traffic signals and conduit street lighting cable circuits and systems. The 2004 • Maintain and replace manholes providing access budget provides funding of $155,389 in operating to the underground electrical conduit system funds for this objective. In addition, $1.8 million in

174 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

CAPITAL PROGRAMS

The Infrastructure Services Division will manage • Alley Reconstruction/Resurfacing Program: $78.8 million in ongoing capital programs in 2004. This program addresses alleys that are in need of Funding for these programs includes $30.6 million in reconstruction or new construction. Ninety per- city funding, in addition to $48.2 million in grant cent of the assessable cost of this program is funding. charged to property owners whose properties abutt the reconstructed alleys. In 2004, $1 mil- Infrastructure is responsible for managing six capital lion is allocated for this program, including programs that preserve and maintain the city’s $477,000 in special assessments. streets, alleys, and sidewalk systems. The programs are: • Sidewalk Replacement Program: This program replaces approximately 400,000 square feet of • Major Bridge Program: This program maintains sidewalk each year. The program’s goal is to the city’s bridge system at a level that is consid- eliminate cracked, spalled, or out-of-grade side- ered safe, provides efficient movement of vehi- walk slabs in the public way. Sidewalks are cles, people and commodities, and improves and designated for replacement based on age, citizen expands the bridge system. In 2004, $14.8 mil- complaints, and associated street and water lion is allocated to this program, including $5.7 projects. The 2004 budget allocates $1.85 million million in city funding and $9.1 million in federal for this program. This funding includes $700,000 and state aids. In 2004, $4.1 million of the allo- in special assessments. cated funds will be expended on new bridges as part of the West Canal Street Expansion project. • New Streets Program: This program provides This program plays a major role in helping Infra- for the construction of streets in presently un- structure Service meet it’s objective relating to improved areas to serve new residential, com- the condition of the city’s bridges. mercial, and industrial properties. A portion of the cost of this program are recovered via a spe- • Major Streets Program: Major streets (arterials) cial assessment. In 2004, $400,000 is allocated to are designated as part of the Federal Transporta- this program. tion System and are eligible for state, county, and federal funding to assist the city with fi- Two of the capital programs managed by Infrastruc- nancing the cost of resurfacing, reconstruction, ture relate to expansion of sewers. The programs and associated traffic control improvements. In are: 2004, a total of $7.7 million in city funding will be allocated to this program. In addition, an- • Out of Pocket Developer Sewer Program: This other $38.1 million in grant funding will be allo- program provides sewer service to new devel- cated to this program. This program, in conjunc- opments. This program is used when develop- tion with the Street Reconstruction/Resurfacing ers request sewer service to their properties or Program, is vital to preserving and maintaining the current sewer system requires modifications. the city’s streets and meeting Infrastructure’s This program is fully funded by developers. The objective regarding the condition of the city’s 2004 budget allocates $500,000 to this program. streets. • Expansion of Sewer Capacity Program: This • Street Resurface/Reconstruction Program: This program extends sewer service to areas of the program addresses streets, curbs and gutters in city that do not have sewer service, expands ca- the need of rehabilitation. These projects are fi- pacity in areas of growth currently served by nanced by the city with a major portion of the city sewers and where there are health concerns cost passed on to abutting property owners via a due to failing septic tanks and standing water, or special assessment. This helps to maintain the at the request of abutting property owners. In city’s streets at a level considered safe for both 2004, $4 million will be allocated to this pro- motorists and pedestrians. This program helps gram. The allocated funds will allow Infrastruc- Infrastructure achieve it’s objective related to the ture to complete two major sewer expansion condition of the city’s streets. The 2004 budget projects. allocates $4 million to this program, including $1.4 million in special assessments.

2004 PLAN AND BUDGET SUMMARY 175 DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

Two other Infrastructure capital programs are re- The final two capital programs are related to safety: lated to underground facilities and manholes. The programs are: • Street Lighting Program: This program strives to maintain adequate levels of lighting in neigh- • Underground Conduit and Manholes Program: borhoods and business districts to preserve a This program provides secure weatherproof sense of safety and security for area residents. public safety conduits to be installed to various In addition, this program is also responsible for city agencies. It provides a reliable route for city improving the street lighting facilities. This in- communications, control of signalized intersec- cludes replacing worn out equipment and the tions, and provides for street lighting cables. removal of overhead wires and modernizing The 2004 budget provides $780,000 for this pro- street control facilities. The 2004 budget allo- gram. The State of Wisconsin will provide an cates $3.6 million to this program. This program additional $900,000 for rerouting conduit as part helps Infrastructure Services to achieve their of the reconstruction of the Marquette Inter- objective related to street lighting standards. change. • Traffic Control Facilities Program: This pro- • Electrical Manhole Program: This program gram provides for the installation and modifica- rebuilds electrical manholes that are in the street tion of existing traffic control facilities. This in- right-of-way. It also provides the necessary safe cludes traffic signs, signal systems, traffic sig- and secure entrance for all communications, traf- nals, and other traffic control facilities. Traffic fic control, and street lighting cable circuits that control facilities meet a basic public need by as- serve the City of Milwaukee governmental signing the right-of-way for pedestrians and mo- buildings and agencies. The 2004 budget allo- torists, while providing guidance and warning cates $221,000 to this program. of danger or unusual road conditions. The 2004 budget allocates $920,000 for this program. This includes $85,000 for traffic signal installation at the corner of South 30th Street and West Okla- homa Avenue which is being installed as a result of traffic that occurs around St. Luke’s Hospital.

176 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

BUDGET SUMMARY CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 246.94 303.58 267.01 -36.57 FTEs - Other 267.60 274.87 268.83 -6.04 Total Positions Authorized 783 783 728 -55 DLH - Operations and Maintenance 444,495 546,384 480,618 -65,766 DLH - Other Funds 481,683 494,766 483,894 -10,872

EXPENDITURES Salaries and Wages $11,151,874 $12,553,706 $11,513,048 $-1,040,658 Fringe Benefits 4,385,661 4,644,872 4,259,827 -385,045 Operating Expenditures 6,472,754 6,459,355 6,653,034 193,679 Equipment 50,954 90,450 50,600 -39,850 Special Funds 0 0 0 0 TOTAL $22,061,243 $23,748,383 $22,476,509 $-1,271,874

REVENUES Charges for Services $3,143,691 $3,005,000 $2,945,500 $-59,500 TOTAL $3,143,691 $3,005,000 $2,945,500 $-59,500

CAPITAL PROJECTS - Infrastructure Services will manage a total $78.8 million in capital projects. This includes approximately $48.2 million in grant and aid funds. City funded projects of $30,629,750 include: a. Expansion of Capacity Sewers - $4,000,000 b. Out of Pocket Sewers Program - $500,000 c. Underground Conduit - $780,000 d. Major Bridge Program - $5,650,809 e. Street Improvements - $7,664,339 f. Street Reconstruction/Improvement - $4,000,000 g. Alley Reconstruction and Resurfacing - $1,000,000 h. Sidewalk Replacement Program - $1,850,000 I. New Streets - $400,000 j. Street Lighting - $3,643,602 k. Traffic Control Facilities - $835,000 l. Traffic Signal Installation (30th and Oklahoma) - $85,000 m. Electrical Manhole - $221,000

2004 PLAN AND BUDGET SUMMARY 177 DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason Administration -1 -1.00 $-37,063 Engineer Technician VI Anticipated vacancy.

1 $63,659 $42,439 Administration and Transportation 0.60 0.40 Design Manager New position.

-1 -0.90 -0.10 $-92,148 $-10,235 Administration and Project Manager

-1 -1.00 $-48,240 Public Works Inspector II Positions eliminated.

-1 Microcomputer Services Assistant

-0.22 0.22 Miscellaneous Adjustment

Transportation -1 -0.60 -0.40 $-90,108 Transportation Design Manager Anticipated vacancy.

-1 -1.00 $-64,567 Civil Engineer III

1 1.00 $-64,567 Engineer Technician VI Retitled to Engineer Technician VI.

-4 -4.00 $-180,361 Civil Engineer I

4 4.00 $180,361 Engineer Technician IV Position retitled.

-1 Engineer Technician II Positions eliminated. -1 -1.00 $-90,108 Management Civil Engineer Sr

-4 -0.40 -3.60 $-102,939 $-154,406 Civil Engineer III

-9 -0.90 -8.10 $-44,036 $-396,302 Civil Engineer II

-1 -0.40 -0.60 $-19,658 $-29,487 Engineer Drafting Technician IV Moved to Construction Section.

-1 Civil Engineer II (Aux.)

-1 Engineering Intern

-1 -0.10 -0.90 $-7,519 $-67,668 Civil Engineer V

-2 -0.80 -1.20 $-29,338 $-44,008 Civil Engineer IV

-2 -0.80 -1.20 $61,654 $-77,480 Civil Engineer III Moved to Streets and Bridges Section. -4 -0.40 -3.60 $-21,539 $-193,854 Civil Engineering II

-1 -0.10 -0.90 $-4,915 $-44,231 Engineering Drafting Technician IV

-1 Civil Engineer II (Aux.)

1 1.00 $64,567 Electrical Engineer III New position.

-1 -0.90 -0.10 Engineering Technician VI

-1 Engineering Technician IV Positions vacant.

-1 Engineering Technician II

178 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -0.15 -0.85 $-4,194 $-37,742 Civil Engineer II Title change.

1 0.15 0.85 $4,194 $37,742 Engineer Technician IV Anticipated vacancy.

-1 -0.15 -0.85 $-4,194 $-37,742 Engineering Technician II

1 0.15 0.85 $5,777 $32,739 Engineering Technician VI Positions eliminated.

1 0.45 0.55 $25,485 $31,148 Engineering Drafting Technician IV

-0.63 0.33 Miscellaneous Adjustment

Construction 1 1.00 1.00 $58,778 Field Operator Inspection Specialist

-1 -1.00 $-64,567 Civil Engineer III

1 1.00 $33,841 Administrative Assistant II Position faces layoff.

-1 -1.00 $-22,120 Office Assistant II Position eliminated. -2 -1.00 $-35,619 Engineering Technician II

-1 -0.90 -0.10 $-42,983 $-4,776 Sidewalk Repair Supervisor

-4 -4.00 $-128,788 Public Work Inspector II

-1 -1.00 $-64,567 Civil Engineer III

-1 -1.00 $-41,977 Inspection Specialist

1 1.00 $47,759 Sidewalk Repair Supervisor

1 1.00 $41,977 Inspection Specialist

-2 -1.00 $-38,516 Engineering Technician II Moved from auxiliary.

5 1.12 $54,255 Engineering Technician II (.33 FTE)

3 0.64 $104,360 Public Works Inspector

3 0.25 $20,950 Engineering Inspection Assistant

-5 -1.12 $-54,255 Engineering Technician II (.33 FTE)

-3 -0.64 $-104,360 Public Works Inspector

-3 -0.25 $-20,950 Engineering Inspection Assistant

1 1.00 $64,567 Engineer Technician VI Retitled from Civil Engineer III.

-1 -1.00 $-64,567 Civil Engineer III Retitled to Engineer Technician VI.

7 7.00 $252,671 Public Work Inspector Moved from Streets. 1 1.00 $64,567 Engineering Technician IV

2004 PLAN AND BUDGET SUMMARY 179 DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-4 -4.00 $-217,514 Civil Engineer II

3 3.00 $160,669 Engineer Technician V Three positions retitled and one eliminated. -4 -4.00 $-179,942 Civil Engineer I

3 3.00 $129,893 Engineer Technician IV

4 1.00 $43,404 Engineering Technician II (.33 FTE)

2 1.00 $31,143 Public Works Inspector II

3 1.00 $20,950 Engineering Inspection Assistant Moved from auxiliary to permanent.

-4 -1.00 $-43,404 Engineering Technician II (.33 FTE)

-3 -1.00 $-20,950 Engineering Inspection Assistant

1 1.00 $64,567 Engineering Technician VI New position.

-4 -4.00 $-185,244 Civil Engineer II

3 3.00 $165,503 Engineering Technician V Three positions retitled and one eliminated. -4 -4.00 $-185,244 Civil Engineer I

3 3.00 $135,525 Engineering Technician IV

1 1.00 $69,995 Civil Engineer IV

3 3.00 $192,780 Civil Engineer III

6 6.00 $314,553 Civil Engineer II Moved from Transportation. 1 1.00 Engineering Drafting Technician IV

1 Civil Engineer II (Aux.)

1 Engineering Intern

0.15 -0.28 Miscellaneous Adjustment

Streets 1 0.50 0.50 $37,407 $37,407 Bridge Design Manager New positions. 1 1.00 $46,841 Street Repair Supervisor

1 0.50 0.50 $37,174 $37,174 Civil Engineer IV

2 1.00 $64,567 $64,567 Civil Engineer III

4 4.00 $215,393 Civil Engineer II Moved from Transportation Unit.

1 1.00 $49,415 Engineering Drafting Technician IV

1 $-46,784 Civil Engineer II (Aux.)

180 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-23,392 Asphalt Repair Crew Leader Seasonal positions eliminated. 3 2.00 $32,484 Cement Finisher Helper

9 4.00 $171,669 City Laborer Seasonal position added.

5 5.00 $107,691 Labor Crew Leader I Moved from auxiliary. 6 3.00 $152,621 Asphalt Worker

Auxiliary -3 -1.50 Street Repair Supervisor

-3 -1.50 Asphalt Repair Crew leader

-4 -2.00 Street Repair Crew Leader

-5 -2.50 Labor Crew leader I

-5 -2.50 Asphalt Worker Seasonal positions eliminated. -5 -2.50 Cement Finisher

-1 -1.00 Cement Finisher helper

-1 -1.00 Asphalt Raker

-3 -1.50 Special Street Repair Laborer

-5 -2.50 Driver/Worker

Bridges -1 -1.00 $-35,254 Bridge Laborer Crew leader

1 1.00 $23,054 Labor Crew leader I Positions eliminated. 1 1.00 $24,772 City Laborer

-1 -1.00 $-46,592 Painter Bridge and Iron

Auxiliary -2 -1.00 Bridge Operator Leadworker

-2 -1.00 Bridge Operator

-3 -3.00 Carpenter Seasonal positions eliminated. -2 -1.00 Bridge Laborer Crew leader

2 1.00 City Laborer (Regular)

-1 -0.50 Ironworker

-1 -0.50 Painter Bridge and Iron Duties will be assumed by similar titles.

2004 PLAN AND BUDGET SUMMARY 181 DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 Field Operations inspection Specialist

-1 -1.00 Administrative Assistant II

-5 -2.50 Public Works Inspector II Moved to Construction.

-2 -1.00 Public Works Inspector II (Aux.)

-1 -0.50 Field Operations inspection Specialist

0.75 2.07 Experience Adjustment

Electrical Services 2 2.00 $81,883 Electrical Mechanic Position eliminated. -1 -0.33 $-36,235 Traffic Sign Worker II

-1 -1.00 $-68,060 Traffic Signal Manager

4 2.00 2.00 $222,952 Electrical Services Manager

1 1.00 $69,791 Electrical Services Supervisor Title changed.

-1 -1.00 $-69,791 Traffic Sign Manager

-2 -2.00 $-153,291 Lighting Services Manager

19 14.00 $167,211 Laborer Electrical services Moved from auxiliary to permanent.

4 4.00 $99,088 City Laborer New position.

-4 -4.00 $-161,285 Electrical Worker

5 1.33 $68,715 Special Laborer Electrical Services

Auxiliary Electrical Services Manager New position.

-7 -7.00 $-150,908 Electrical Mechanic

-2 -2.00 $-76,657 Painter

1 Traffic Sign Worker II Moved from auxiliary to permanent. -4 -4.00 $-148,033 Special Laborer Electrical Services

-26 -18.90 -7.10 $-741,906 Laborer Electrical Services

1.00 -2.49 Experience Adjustment

Support Services -1 -1.00 $-37,063 Communication Assistant III Position retitled. 1 1.00 $37,063 Program Assistant I

1 1.00 $38,440 Equipment Mechanic IV New position. 1 1.00 $33,393 Specialist Street Repair Laborer

182 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – INFRASTRUCTURE SERVICES DIVISION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

2 2.00 $72,035 Inventory Assistant IV Position moved from Operations.

-2 -2.00 $-69,446 Inventory Assistant II Position eliminated. -1 -0.75 Inventory Assistant II

-0.32 1.06 Experience Adjustment -55 -36.57 -6.04 $-732,968 $-35,442 TOTAL

2004 PLAN AND BUDGET SUMMARY 183 DEPARTMENT OF PUBLIC WORKS OPERATIONS DIVISION

EXECUTIVE SUMMARY

STRATEGIC Maintain an efficient and effective garbage collection system. ISSUES: Keep Milwaukee’s neighborhoods clean and healthy.

Reduce the amount of residential solid waste disposed in city landfills.

Maintain safe driving conditions during snow and ice weather events while minimizing the use of salt.

Maintain a healthy urban forest.

Improve the environment and appearance of Milwaukee by encouraging citizens to plant and maintain trees on private property.

Provide affordable and effective fleet and building services to city departments and agencies.

Improve the condition of city owned buildings and facilities.

INITIATIVES Continue to realize more efficient and effective utilization of personnel resources through the FOR 2004: consolidation of employees within the Operations Division. Specifically, the enforcement of city codes regulating weeds on properties will be streamlined.

Pursue opportunities for the consolidation of facilities and service provisions.

Maintain solid waste and special collection crew levels year round.

Prioritize snow plowing resources to achieve bare pavement on city arterial streets and safe driving conditions on non-arterial streets during snow and ice weather events.

Maintain an attractive boulevard system while increasing the use of perennials on low traffic boulevards.

Implement a new tree pruning cycle for the city’s urban forest.

BACKGROUND

The Department of Public Works (DPW) provides and Fleet Divisions into the Operations Division. services that impact the lives of Milwaukee residents Through improved coordination of personnel, ad- on a daily basis. In providing these services, DPW ministration, and equipment, creation of the Opera- must adapt to changing equipment technology, tions Division has improved service delivery to needs of citizens, and weather impacts. To assist in Milwaukee residents. For example, in the Sanitation meeting these challenges, DPW continuously re- and Fleet Operations Sections, the titles of views and revises its procedures and organizational Driver/Loader, Special Equipment Operator, Truck structure to gain the necessary efficiencies that allow Driver (3.5 tons and over), Driver Worker, and it to continue to provide high service levels. Equipment Operator/Worker were combined into a single title of Operations Driver/Worker. The con- Operations Division solidation of these titles into one classification enables DPW to utilize existing staff more effectively. In 2002, DPW addressed some of these challenges by In 2004, 18 Sanitation Worker titles are to be re- combining the Forestry, Sanitation, and Buildings placed by 14 of the more flexibly assigned Opera-

184 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – OPERATIONS DIVISION

tions Driver/Worker titles, allowing for a net Figure 1 reduction of 4 positions.

Additionally, in 2004 the Operations Division Operations Division Fleet Funding by Activity will continue restructuring its management personnel. This allows for the elimination of General Fund the Sanitation Superintendent and City For- Equipment Capital Budget Purchases ester positions which are replaced by an En- Equipment 3.1% vironmental Services Superintendent. In Purchases 22.0% addition, assigning weed and debris property code violation inspection duties to Urban Forestry Technicians, as well as Sanitation Supervisors, will allow for the reduction of Repair and three Sanitation Supervisor positions. Maintenance 38.8% Operations Forestry: The Forestry Section of the De- 36.1% partment of Public Works Operations Divi- sion is primarily responsible for tree and landscape management. Milwaukee’s Urban Forestry Program has been recognized as a model by national forestry organizations, businesses, provides building services, such as: design; construc- and visitors to the city. The program currently tion; and maintenance, for city facilities excluding maintains 200,000 trees and 120 miles of boulevards the Port of Milwaukee and the Milwaukee Public that provide Milwaukee with a natural beauty both Library. Consequently, this section oversees 160 of residents and visitors enjoy. the city’s 220 buildings.

Sanitation: The responsibility of the Sanitation Sec- As part of its facilities management responsibilities, tion is to collect and dispose of solid waste and to the section operates an around the clock information protect the environmental health of the city. Sanita- center located in City Hall. It also provides physical tion activities protect city residents from infectious security and access control at the downtown com- diseases and protect area lakes and rivers from plex and other key facilities by using security guards harmful storm water run-off by collecting solid and closed circuit television. waste and sweeping city streets and alleys. Addi- tionally, Sanitation efforts reduce the amount of Approximately, $76 million in operating funds are materials sent to landfills through both its solid included in the 2004 budget for the Department of waste reduction efforts and the city’s recycling pro- Public Works Operations Division. In addition to gram. operating funds, the 2004 budget includes capital funding of $27 million and grant funding of ap- Fleet Services and Fleet Operations: The Fleet proximately $3.3 million. Services and Fleet Operations Sections operate and Solid Waste Fee maintain DPW’s centralized fleet of over 4,000 motor vehicles and related equipment (see Figure 1). The The 2001 budget established a new fee for solid Fleet Services Section provides equipment to other waste expenses. The Solid Waste Fee (created in DPW divisions (excluding the Water Works, Sewer accordance with Sec. 66.0627 Wis. Stats. which per- Maintenance Fund, and Parking Fund) free of mits municipalities to implement a special charge for charge. It also rents vehicles and equipment on a current services which may allocate all or part of the permanent or temporary basis to other city depart- service costs onto the properties served) partially ments as well as rents equipment from the private recovers solid waste collection costs through a user sector to augment the city’s existing fleet. In addi- fee rather than the property tax. The City of Mil- tion, the section provides maintenance and repair waukee implemented the Solid Waste Fee to distrib- services for vehicles owned by the Library, Health ute solid waste costs according to usage and to re- Department, Police Department, Water Works, quire property tax exempt refuse users to pay for Sewer Maintenance Fund, and Parking Fund. their portion of the city’s solid waste costs.

Facilities Development and Management: The The 2004 rate for the Solid Waste Fee remains Facilities Development and Management Section unchanged at $75 per year per residential unit. This

2004 PLAN AND BUDGET SUMMARY 185 DEPARTMENT OF PUBLIC WORKS - OPERATIONS DIVISION rate will recover $13.9 million or approximately half control fee remains unchanged at $0.2736 per foot of of the city’s household solid waste collection costs. property footage. Operating and capital snow and ice control costs in 2004 are expected to be $7 Snow and Ice Control Fee million. State law requires the city to recover only actual costs. In 2004 only 34.3%, or $2.4 million of The 2002 budget created a new fee to recover the the estimated total costs will be recovered through cost of snow and ice control. The fee is based on the Snow and Ice Control Fee. This fee is recovered property foot frontage and actual snow and ice on the municipal service bill for all properties in the control costs. The 2004 rate for the snow and ice city, including tax exempt properties.

DPW OBJECTIVE 4

Maintain fewer than 50 citizen complaints regard- Mayor’s Landscape Awards Program: The Forestry ing the condition of the boulevards in the year Section will continue to provide technical support 2004. and expertise to the Mayor’s Landscape Awards Program. The presentation of these annual awards OUTCOME HISTORY (see page 159) has been conducted under the sponsorship of Greening Milwaukee since 1997. It honors members The Forestry Section beautifies Milwaukee through of the community who beautify Milwaukee’s neigh- its work on the city’s boulevard system. Forestry borhoods through their “greening efforts”. takes pride in designing, planting, and maintaining the landscapes on city boulevards, which typically ACTIVITIES contain a combination of turf, trees, and colorful flower and shrub beds. Forestry continually strives • Turf maintenance to provide this urban benefit more efficiently. In • Irrigation systems repair past years, Forestry has achieved cost savings with- • Flower bed maintenance out reducing service by consolidating mowing routes, increasing use of perennials, and other initia- PROGRAM CHANGES tives. Reduced Boulevard Flower Beds: Due to fiscal In 2004, DPW will allocate $4.5 million in operating constraints, Forestry will convert 40% of the flower funding and $473,972 in capital funding to beautify beds it maintained in 2003 to perennials. While per- the city’s 476 acres of boulevards and green spaces. ennials will not be substantially cheaper to plant in The section will plant over 115,000 annuals as well as 2004, this could lead to savings in future years. For- perennials, shrubs, and trees. To measure resident’s estry will maximize the value of its remaining flow- satisfaction with the appearance of boulevards, For- erbeds by retaining colorful showcase boulevards in estry will continue to track the number of complaints high traffic areas. on the condition of the city’s boulevards.

DPW OBJECTIVE 5

Maintain a tree mortality rate of less than 1.96% in homeowners, and provides beauty to the city, which the year 2004. adds value to Milwaukee’s neighborhoods.

OUTCOME HISTORY (see page 160) Forestry cares for its trees by keeping a regular pruning cycle, inspecting sidewalk construction The 2004 budget for the Operations Division in- projects to protect the root structure of adjacent cludes $10.4 million in operating funding and $1.3 trees, and by preventing the spread of pests. Proper million in capital funding for the maintenance of pruning decreases tree mortality and reduces approximately 200,000 trees in public spaces cleanup time for fallen branches and debris after throughout Milwaukee. A healthy urban forest im- windstorms. Since 1987, the tree mortality rate has proves urban air quality, decreases energy bills for fluctuated between 1.4% and 2.5% (see Figure 2).

186 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – OPERATIONS DIVISION

Figure 2 In addition to pruning, Forestry works with other levels of government to control en- croaching pests such as the Gypsy Moth and Tree Mortality Rates

Asian Longhorn Beetle. Forestry has identi- 3.0% fied defoliation in the most northern section of the city and anticipates continued defolia- 2.5% tion from the Gypsy Moth. In 2004, Forestry will work to identify problem areas, adminis- 2.0% ter pesticides, and educate homeowners on how to address the problem on their own 1.5% properties to mitigate damage from this pest. In addition to caring for existing trees, the 1.0% Operations Division removes damaged or diseased trees and replaces them to maintain 0.5% a vibrant urban forest (see Figure 3). 0.0% The capital improvements program funds 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 trees purchased from private vendors as well as salaries and fringes for planting trees. The Figure 3 cost of tree production at the municipal nursery are funded with the operating account. Urban Forestry Replacement

ACTIVITIES 5,000

4,500

• Tree planting 4,000

• Production of trees at the city nursery 3,500

• Pruning and maintenance of trees 3,000

• Removal of hazardous and damaged 2,500

trees and stumps 2,000

• Inspect construction projects to protect 1,500

trees 1,000

• Develop strategies to control emerging 500

pests 0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

PROGRAM CHANGES Trees Removed Trees Planted

Change in Pruning Cycle: Pruning reduces Environmental Policy Analyst: In 2004, Forestry tree branch interference with pedestrian and ve- will add an Environmental Policy Analyst position. hicular traffic, promotes healthy tree growth and The position will be located in Forestry but will be structure, and reduces damage from limbs falling in funded through a Sanitation grant. This use of funds storms. In 2004 Forestry will change its pruning is possible due to the consolidation of the two sec- cycle. From 1994 through 2003, Forestry pruned tions under the Operations Division. The position trees on a “three and six year” cycle. This cycle will be responsible for securing new environmental pruned younger, faster growing trees every three grants for the city, as well as developing policies and years, and pruned older larger trees every six years. coordinating environmental efforts in DPW. In 2004, Forestry will return to its former schedule of pruning all trees every five years. Savings will occur as Forestry crews visit different sections of the city Greening Milwaukee’s Schools: Since the 1950’s, every five years, rather than every three under the many of Milwaukee’s public school playgrounds old system. A five year pruning cycle, is still within have been paved with asphalt to reduce maintenance the standards set by national urban forestry organi- costs. This has resulted in public school play- zations and exceeds the cycle of other large cities. grounds devoid of trees, grass, and playable surfaces This change results in the elimination of one Shop for our children. Asphalt surfaces are on average 10 position, and at least three field staff positions for to 15 degrees hotter than shaded playgrounds and savings of $186,000. are inherently more dangerous than a natural landscape. In 1999, the city began the Greening Milwau- 2004 PLAN AND BUDGET SUMMARY 187 DEPARTMENT OF PUBLIC WORKS - OPERATIONS DIVISION kee's Schools Program, a public/private partnership. estry will continue to work with Milwaukee Public The program replaces asphalt surfaces with turf, Schools, corporate donors, Greening Milwaukee, and trees, and mulched beds. Since inception, 22 schools the UPAF/Visions Urban Forest Fund to provide have been recipients of the program. In 2004, For- this valuable service to Milwaukee’s children.

DPW OBJECTIVE 7

Figure 4 Maintain current levels of public safety during snow and ice emergencies while minimizing the amount of salt used to 250 Snow and Ice Control Expenditures pounds per lane mile in 2004. (2002 Dollars) vs. Inches of Snowfall $14,000,000 100.0

90.0 OUTCOME HISTORY (see page 160) $12,000,000 80.0 Snow and ice control operations are con- $10,000,000 70.0 60.0 ducted to ensure public safety and to offset $8,000,000 the adverse effect winter snow and ice events 50.0

$6,000,000 Inches have on city commerce, education, medical 40.0 services, and emergency services. The De- $4,000,000 30.0 partment of Public Works Operations Divi- 20.0 sion 2004 budget includes approximately $6 $2,000,000 million in operating funding and $997,000 in 10.0 $0 0.0 capital funding for snow and ice control. 19831984198519861987198819891990199119921993199419951996199719981999200020012002 Expenditures Snowfall The extent to which snow and ice control operations are performed is largely depend- salt annually to maintain drivability of city streets ent upon weather conditions. Due to the unpredict- during snow and ice events. Due to the negative able nature of the weather, budgeting for snow and effect salt use has on the city’s waterways, wildlife, ice operations in a given year proves difficult. Fig- plants, and vehicles, DPW strives to limit its salt ure 4 shows snow and ice control expenditures (2002 usage, while preserving public safety during snow dollars) and the annual inches of snowfall since 1983. and ice events. As can be seen in Figure 4, snow and ice control expenditures are largely dependent upon snowfall, The city’s snow and ice control policy and proce- which has fluctuated tremendously over the past dures states that its primary mission is to remove two decades. snow as expeditiously and economically as possible to restore safe motorist and pedestrian travel, ensure In addition to snowfall quantity, rate of snowfall, public safety, and minimize economic losses. Salt is moisture content, type of precipitation, current and applied at the minimum rate to ensure public safety. forecasted temperatures, wind, time of day, and day DPW’s snow and ice control procedures explain that of week are but some of the factors that can influ- the department’s goal is to return arterial driving ence the actual cost of snow and ice control. As a lanes to bare pavement condition. result, the Operations Division budget for snow and ice operations is based on average snow and ice con- In 2004, funding for snow and ice control is reduced trol expenditures from prior years. by $1.4 million from 2003 funding of $7.4 million to reflect prior year snowfall averages and recent ACTIVITIES changes in DPW’s management of snow and ice control operations that emphasize reducing cost of • Snow plowing operations service. The operational changes, implemented in • Salting operations the winter of 2003 as part of the 2003 budget, included reducing plowing operations on non-arterial PROGRAM CHANGES streets and reducing the extent to which staff are placed on paid stand-by in anticipation of snow events. This also included a reduction to the quan- Snow and Ice Control Changes: Over the last ten tity of salt applied during salting operations, reduc- years, DPW has used an average of 50,000 tons of ing the purchase of salt by 7,000 tons in 2004.

188 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – OPERATIONS DIVISION

DPW OBJECTIVE 9

Figure 5 Maintain the amount of residential solid waste landfilled per capita at 700 pounds in 2004. Residential Waste Landfill Per Capita OUTCOME HISTORY (see page 160) 900 The Department of Public Works is committed 800 to improving environmental quality through 700 waste reduction efforts. As indicated in Fig- 600 ure 5, DPW has made progress toward 500 achieving the objective of reducing the 400 amount of residential solid waste landfilled. 300 The amount of residential waste disposed in Pounds Per Capita 200 landfills per capita decreased approximately 20.8%, from 844 pounds in 1990 to 669 pounds 100 0 in 2002. 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

DPW emphasizes waste reduction through educational outreach. The importance of “reduction” before “recycling” is stressed through ACTIVITIES classroom presentations at city schools, Recycling Education Center Programs, and direct constituent • Curbside recycling collection contact. DPW is also actively involved in the South- • Fall leaf, brush, and yard waste collection and east Wisconsin Waste Reduction Coalition whose composting mission is “to reduce the amount of waste generated • Recycling and waste reduction education by residents and businesses throughout Southeast Wisconsin through a regionally coordinated waste • White goods and tire collection reduction campaign”. Activities of the coalition • Self-help center recycling programs include radio and television public service announcements, displays at civic events, and a scholar- PROGRAM CHANGES ship competition for high school students. DPW’s 2004 budget includes approximately $3.1 million in Reduced Overtime Due to recycling route adjust- operating, $336,000 in capital funding, and $3 million ments, the need for overtime is anticipated to be in grant funding for residential solid waste reduc- reduced by approximately 4,500 hours annually, tion. generating $112,588 in savings in 2004.

DPW OBJECTIVE 11

Maintain the overall cleanliness of the city as which measures changes in accumulations of loose measured by the Photometric Index projection of trash in cities. The Index is certified by Keep Amer- 6.0 in 2004. ica Beautiful, Inc. (KAB) and must be used to participate in the Clean Community System the behav- OUTCOME HISTORY (see page 161) iorally based program to reduce litter by changing attitudes and practices relating to the handling of The Department of Public Works Operations Divi- waste. This measurement technique was developed sion’s 2004 budget includes approximately $34.9 in 1974 by the Research Foundation American Public million in operating funding, $2 million in capital Works Association, under contract to KAB. The funding, and approximately $282,750 in grant fund- process involves the use of 120 photographic slides ing for city cleanliness. taken at random in various locations throughout the city. Pictures are taken of streets, public right-of- In 2000, the Sanitation Section began utilizing a for- ways, vacant lots, parking lots, loading docks, and mal measure to gauge the cleanliness of city streets. commercial refuse storage areas. These slides are The outcome measure used is the Photometric Index, then analyzed and measured against a baseline year

2004 PLAN AND BUDGET SUMMARY 189 DEPARTMENT OF PUBLIC WORKS - OPERATIONS DIVISION for comparative cleanliness. The Photometric Index Since that time, the Sanitation Section has main- is recorded as a number between 0 and 96 that retained a citywide inventory of approximately flects the amount of litter detected when randomly 360,000 flipper compatible garbage and recycling generated pictures are analyzed. Over 500 cities, carts, repairing damaged carts, and replacing carts including Houston, Indianapolis, and Chicago make that are lost or have exceeded their useful life of use of a Photometric Index to quantify city cleanli- approximately ten years. In 2004, $800,000 is in- ness. In 2002, the Sanitation Section found that Mil- cluded for the purchase of approximately 20,000 new waukee surpassed its Photometric Index goal of 6.0 carts for replacement of lost or severely damaged with Photometric Index of 5.83. In this index, the carts. This represents an estimated 18 year cart re- lower the number, the less the amount of litter de- placement schedule. However, this also represents tected. an improvement over the 15,000 carts budgeted in 2003. Increasing the replacement of carts that have ACTIVITIES exceeded their useful life is expected to reduce the cost of cart maintenance, allowing for the reduction • Weekly residential garbage collection of one vacant cart Maintenance Technician position • Operation of two self-help centers for a savings of $46,495 in salaries and fringe benefits. • Cleanup Box Program (each weekend from April through October) Targeted Neighborhood Box Program: Community • Systematic neighborhood cleanups Development Block Grant Funds will provide • Street and alley sweeping $282,750 in 2004 for the provision of 56 boxes per • Weed cutting (in compliance with city ordi- week for the targeted Neighborhood Box Program. nances) costs recovered from property owners In 2004, the Neighborhood Box Program will again • Cleanup and support for civic and special events target cleanups within the city’s 17 Neighborhood ranging from the Great Circus Parade to neigh- Strategic Planning Areas (NSPs). In the Operations borhood block parties Division’s operating budget, $20,000 is provided to • Special collection services to residential property fund neighborhood cleanups that fall outside of the owners community development block grant boundaries.

PROGRAM CHANGES Solid Waste Disposal Contract: In 2004, DPW will have awarded a new contract for the delivery and disposal of the city’s solid waste. Due to the pres- Funding for Cart Replacement: In 1981, the Sanita- ence of competing bids for this contract, it is ex- tion Section began utilizing an automated garbage pected that the contract award will represent a $1 cart flipper system to increase the efficiency of waste million reduction from 2003 solid waste disposal collection operations. The system requires the use of costs. flipper system compatible carts, which were provided to households at no charge.

DPW OBJECTIVE 13

Provide quality support to facilities by ensuring The Facilities Development and Management Sec- 83% of city buildings have condition assessments tion’s activities focus on providing quality support in 2004. for facilities used by city agencies (all facilities excluding those of the Port and Library) with the ex- OUTCOME HISTORY (see page 161) ception of playlots. The section maintains HVAC systems, provides custodial services, and oversees The Department of Public Works Operations Divi- architectural design work for 160 city buildings. The sion Facilities Development and Management Sec- section is also responsible for a wide variety of tion’s 2004 budget includes approximately $10.1 building repairs that range from window to roof million in operating funding and $19.6 million in replacements. capital funding to provide quality support for facilities. DPW tracks its performance of providing quality support facilities through performing condition assessments on city buildings. Condition assessments

190 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – OPERATIONS DIVISION

involve a physical inspection of buildings by staff. • Energy management The information gathered through the assessment • Management of various Department of Public allows planning for the maintenance and repair of Works contracts for services, including cleaning, the city facilities. cafeteria and vending, and security guard services In 2002, DPW completed a total assessment of the condition of city facilities and used this information PROGRAM CHANGES to update its Facilities Condition Index (FCI). The FCI is a computerized index that DPW uses to Reduced Facilities Maintenance Staff: Building evaluate building conditions and to prioritize main- maintenance positions, including titles such as Car- tenance needs. The FCI is a relative index, based penter, Painter, Electrical Mechanic, and Mainte- upon a facility’s current repair cost and the costs to nance Technician, are reduced by 12 positions in replace the facility in like materials and design at 2004. This represents a reduction from 87 to 75 posi- current labor and material costs. Index values di- tions in Mechanical, Electrical, and Construction and rectly identify those facilities most in need of imme- Repair Services. This reduction is anticipated to diate repair, allowing the city to prioritize facility generate $592,859 in salary savings, but will increase maintenance projects and funding. the time required to respond to building maintenance needs. ACTIVITIES Reduced Custodial Services: Custodial positions • Architectural and mechanical design and con- assigned to the City Hall complex are reduced by 3 struction management vacant positions to a total of 27 positions in 2004. • Communication and data cable installation and Also, contracted services at outlying facilities are repair services reduced to reflect decreased frequency of custodial • Custodial, electrical, heating, and ventilation services such as window cleaning and vacuuming. services This reduction in custodial services will generate • Masonry, carpentry, painting, and concrete work $96,485 in salary and $31,843 in operating savings. • Inspection, maintenance, and repair of recreational facilities

CAPITAL PROJECTS

The 2004 capital improvements budget provides The total cost of the restoration project is estimated approximately $27 million in funding. These funds at $31.7 million over four years, from years 2003 will be allocated to 12 different projects. through 2006. Of that amount, $11.2 million is included in the capital budget in 2004. City Hall Restoration Program: City Hall is a building of historical and architectural significance. Tree, Shrub, and Evergreen Planting: As part of Listed on the National Register of Historic Places, the 2004 capital budget, $600,000 will be allocated to City Hall has stood for 106 years as a beacon of the plant approximately 3,757 trees and shrubs. In 2003, city. The City Hall Restoration Program addresses Forestry reduced the number of trees it planted be- the structural and historical integrity of City Hall. cause the municipal nursery did not have a sufficient This program restores the exterior façade and roofs number of trees to meet the demand, and the city of City Hall to ensure water tight, energy efficient, would have had to purchase more costly trees from and safe conditions. An evaluation by an architec- private vendors. In 2003, Forestry planted 5,800 tural engineering firm experienced in evaluating small trees, or “whips” at the nursery, ensuring a historic structures, followed by a peer review of ready supply of inexpensive trees in the coming architects, engineers, and historic restoration ex- years. As a result, the city will fully fund the tree perts, identified repairs needed to address aging planting program for 2004, and Forestry will work to related deterioration of key exterior elements such as fill the backlog of tree replacements created in 2003. the brick, terra cotta, sandstone, windows, embed- ded structural steel, and copper roofing. Concealed Irrigation and General Landscaping of City Boulevards: In 2004, Forestry’s capital budget includes $196,500 in funding for installation of

2004 PLAN AND BUDGET SUMMARY 191 DEPARTMENT OF PUBLIC WORKS - OPERATIONS DIVISION flower bed irrigation systems in newly constructed good operating condition. This program involves boulevards. The system is designed to keep boule- the replacement and repair of a variety of building vard vegetation vibrant throughout the spring and systems, including air handling units (AHUs); eleva- summer. However, this represents a change from tor motors and controls; compressors; security sy s- prior years, in which irrigation systems were built to tems; circuit breakers and transfer switches; fuel water both flower beds and turf. This policy change dispensing systems; and other various electrical and is coordinated with the change to mow boulevards mechanical systems. biweekly rather than weekly, as less water will necessitate less mowing. City Hall Complex Remodeling: This program provides funding for interior remodeling and up- Municipal Garages and Outlying Facilities: The grades for various city agencies. Upgrades include 2004 capital budget includes $1,500,000 to design meeting the new State Energy Code requirements for and construct phase two of the remodeling of the lighting controls and HVAC’s. Services provided by Central Municipal Repair Garage. Phase one of this the program include office space planning and de- project included consolidating the functions of the velopment of cost proposals to meet the changing Southwest Municipal Repair Garage into the Central needs of city agencies. In 2004, this program in- Municipal Garage in 2003. Phase two will replace cludes $440,000 in capital funding for the completion outdated mechanics’ equipment to improve vehicle of office remodeling of the Comptroller Office on the repair efficiency and safety, and replace outdated fourth floor of City Hall. This funding is in addition building systems to meet current building codes for to $1.7 million included in the 2002 budget for this energy efficient lighting, HVAC and digital controls, project. fire, and life/safety systems. Facility Exterior Program: This program helps to Environmental Program: This program helps to maintain the exterior of city facilities in a watertight provide a safe environment for the public and city and energy efficient condition and to replace yard employees in city owned buildings through removal and parking lot pavements as needed. The project of hazardous building materials. The project areas includes various replacements and maintenance consist of asbestos abatement, lead abatement, and items, as recommended by the Facility Condition soil and groundwater remediation. Funding of Information System. This program is funded at $685,000 is included in the 2004 capital budget for $431,000 in the 2004 capital budget. this program. Fleet Municipal Equipment Replacement: This ADA Compliance Program: The 2004 budget in- program funds major durable equipment that ordi- cludes capital funding of $400,000 for this program narily exceeds $50,000 and has a life expectancy of which improves access to offices, restrooms, tele- approximately ten years. Examples of major equip- phones, and drinking fountains at the downtown ment that are typically funded in this account in- complex and at outlying facilities. These efforts are clude garbage trucks, dump trucks, back-hoes, and needed to comply with federal regulations govern- street sweepers. In 2004, $6.1 million is provided in ing the Americans With Disabilities Act. the Operations Division’s capital budget for equipment replacement. Recreation Facilities Program: The 2004 capital budget includes $400,000 for improvements to Menomonee Valley Relocation: As part of the neighborhood recreation facilities, including chil- city’s effort to encourage business development in dren’s play areas and stand-alone recreation sites. In the Menomonee Valley, which includes the new addition to the replacement of equipment subject to Sixth Street Viaduct and extension of Canal Street to normal wear and tear, DPW works to improve the the Miller Park Baseball Stadium, the city is explor- accessibility of play areas and insure that they meet ing the opportunity to relocate its Infrastructure, safety and ADA requirements. In 2004, DPW plans Sewer, Electrical Services, and Building Services to upgrade children’s play areas at Ellen Park and Garages and office from their current locations on Lewis Playfield, restore the play area at 90th and Canal Street in the Menomonee Valley. In 2004, $2.5 Bender Road, and restore various baseball dia- million is included for design and preliminary site monds. preparation for the relocation of those facilities. However, no funding for this project may be expended until the Common Council has approved a Facility Systems Program: The 2004 capital budget project plan. includes approximately $2.5 million to keep the city’s building mechanical and control systems in

192 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – OPERATIONS DIVISION

OTHER ACTIVITIES AND CHANGES

Reduce Fleet Maintenance Staff: Fleet Maintenance Transfer Anderson Building Maintenance Costs to staff was reduced by eight positions, for salary sav- the Department of Neighborhood Services: The ings of $242,372 to reflect recent years’ improved former Town of Lake’s Municipal Building, also funding for fleet capital equipment funding. Main- known as the Robert A. Anderson Municipal Build- taining adequate replacement schedules for equip- ing, is owned by the city and occupied solely by the ment will result in reductions so repair costs and Department of Neighborhood Services. In 2003, work disruptions due to equipment breakdowns. DPW provided funding for maintenance and custodial services to this building totaling approximately $120,000. In 2004, these costs will be budgeted in the Department of Neighborhood Services departmental budget.

BUDGET SUMMARY CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 892.44 912.67 882.89 -29.78 FTEs - Other 115.18 120.91 119.91 -1.00 Total Positions Authorized 2,576 2,492 2,028 -464 DLH - Operations and Maintenance 1,606,397 1,642,806 1,589,202 -53,604 DLH - Other Funds 207,324 217,638 215,838 -1,800

EXPENDITURES Salaries and Wages $40,098,337 $39,380,505 $37,011,850 $-2,368,655 Fringe Benefits 14,853,080 14,570,786 13,694,386 -876,400 Operating Expenditures 24,070,829 25,735,842 23,323,882 -2,411,960 Equipment 2,492,667 1,660,447 1,941,169 280,722 Special Funds 0 0 0 0 TOTAL $81,514,913 $81,347,580 $75,971,287 $-5,376,293

REVENUES Charges for Services $27,238,111 $25,659,101 $25,796,700 $137,599 Miscellaneous 241,518 242,100 220,000 -22,100 TOTAL $27,479,629 $25,901,201 $26,016,700 $115,499

CAPITAL PROJECTS - Includes $26,998,500 in funding for the following projects: a. ADA Compliance Program - $400,000 b. City Hall Complex Remodeling - $440,000 c. City Hall Restoration Program - $11,200,000 d. Concealed Irrigation and General Landscaping of City Boulevards - $196,500 e. Environmental Program - $685,000 f. Facilities Exterior Program - $431,000 g. Facilities Systems Program - $2,500,000 h. Fleet Equipment Replacement - $6,146,000 i. Menomonee Valley Facilities Relocation - $2,500,000 j. Municipal Garages and Outlying Facilities - $1,500,000 k. Recreation Facilities Program - $400,000 l. Trees, Shrubs, and Evergreen Replacement - $600,000

2004 PLAN AND BUDGET SUMMARY 193 DEPARTMENT OF PUBLIC WORKS - OPERATIONS DIVISION

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason Operations Division Administration -1 -1.00 $-70,375 Finance Manager Retitled position. 1 1.00 $73,254 Administrative Services Manager

-1 -1.00 $-33,307 Accounting Assistant II Reduce vacant Administrative staff.

Fleet Services -1 -1.00 $-90,583 Fleet Services Manager Reduce pay range from 14 to 13. 1 1.00 $77,521 Fleet Services Manager

1 $69,791 Equipment Acquisition and Disposal 1.00 Supervisor

-1 -1.00 $-69,791 Vehicle and Equipment Specialist Retitled position. -1 -1.00 $-37,062 Personnel Payroll Assistant II

1 1.00 $37,062 Program Assistant II

-1 -1.00 $-57,658 Auto Mechanic Supervisor II Reduce vacant supervisory position.

1 1.00 $40,672 Mechanic Lead Worker Reduce two vacant Vehicle Technician Heavy positions and -4 -4.00 $-149,508 Vehicle Services Technician Heavy retitle one to Mechanic Lead Worker and one to Vehicle 1 1.00 $38,816 Vehicle Services Technician Services Technician.

-1 -1.00 $-40,136 Automotive Electrician Eliminate vacant position.

-2 -2.00 $-60,166 Garage Attendant Eliminate two vacant positions.

-1 -1.00 $-27,950 Office Assistant II

-2 -2.00 $-72,604 Auto Body Repair/Painting Technician Eliminate vacant positions.

-1 -1.00 $-37,237 Equipment Inventory Supervisor

1 1.00 $35,710 Inventory Assistant V Retitled positions. -1 -1.00 $-34,394 Equipment Parts Assistant

-1 Vehicle Services Technician (Aux.) Retitle auxiliary positions to 2 Mechanic Lead Worker (Aux.) increase flexibility assigning duties. -1 Fuel Systems Technician (Aux.)

Fleet Operations/Dispatch 1 $56,207 Equipment Operations and Training Created to increase coordination of 1.00 Coordinator consolidated dispatch function.

194 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – OPERATIONS DIVISION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-3 -3.00 $-108,054 Communications Assistant IV Consolidate titles reducing one -4 -4.00 $-136,732 Communications Assistant III filled position. 6 6.00 $216,108 Clerk Dispatcher II

-1 Equipment Operations Manager (Aux.)

-4 Field Service Mechanic (Aux.)

-25 City Laborer (Regular) (Aux.)

-50 Truck Driver (Winter Relief) (Aux.)

-2 Communication Assistant III (Aux.) Reduce un-needed vacant auxiliary positions. -1 Communication Assistant IV (Aux.)

3 Clerk Dispatcher II (Aux.)

-21 Snow Driver (Aux.)

-9 Snow Operator Heavy (Aux.)

-9 Operations Driver Worker (Aux.)

Facilities Development and Management -1 -1.00 $-108,633 Buildings and Fleet Director

1 1.00 $112,006 Buildings and Fleet Superintendent Retitled positions. -1 -1.00 $-36,018 Administrative Assistant II

1 1.00 $39,038 Program Analyst II

-2 -1.00 Communications Assistant II (Aux.) Eliminate un-needed and create -2 -0.35 Communications Assistant III (Aux.) needed auxiliary positions. 1 Network Analyst Associate (Aux.)

-3 -3.00 $-96,485 Custodial Worker II/City Laborer Reduce vacant positions due to reduced custodial services at City Hall complex.

-2 -2.00 $-78,147 Maintenance Technician II Reduce 13 Facility Maintenance positions (5 filled) due to decreased -1 -1.00 $-38,441 Equipment Mechanic IV Facilities Maintenance, retitle Painter Supervisor House position -3 -3.00 $-50,928 Electrical Mechanic to Painter Leadworker House position to reduce supervisory staff, -1.00 $-45,573 Electrical Mechanic (Aux.) and retitle Laborer/Electrical Services to Special Laborer Electrical Services.

2004 PLAN AND BUDGET SUMMARY 195 DEPARTMENT OF PUBLIC WORKS - OPERATIONS DIVISION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

1 1.00 $33,723 Special Laborer Electrical Services

-2 -1.00 -1.00 $-30,565 $-30,563 Carpenter Reduce 13 Facility Maintenance -1 -1.00 $-48,610 Painter Supervisor House positions (5 filled) due to decreased Facilities Maintenance, retitle 1 1.00 $44,574 Painter Leadworker House Painter Supervisor House position to Painter Leadworker House -3 -3.00 $-126,474 Painter position to reduce supervisory staff, and retitle Laborer/Electrical -1 -1.00 $-45,490 Bricklayer Buildings Services to Special Laborer Electrical Services. -1 -1.00 $-34,028 Cement Finisher

-1 -1.00 $-33,723 Laborer/Electrical Services

-3 -3.00 $-108,054 Inventory Assistant IV Transfer position function to Infrastructure Services. -1 -1.00 $-33,723 Inventory Assistant II

-1 Inventory Assistant IV (Aux.)

-2 Mason Helper (Aux.) Reduce un-needed auxiliary positions. 1 Bridge Labor Crew Leader II (Aux.)

-2 Bridge Laborer I (Aux.)

0 -2.00 $-52,694 Bridge Laborer II (Aux.) Reduce facilities maintenance.

0 4.35 Carpenter Fund board-up services as reimbursable charge.

Sanitation -1 -0.25 $-31,422 Sanitation Services Superintendent Eliminate vacant position due to new Environmental Services Superintendent.

1 1.00 $34,735 Program Assistant II Retitled position. -1 -1.00 $-32,615 Administrative Assistant I

-1 -0.50 $-12,126 Graduate Intern Reduce vacant position.

-1 -1.00 $-59,800 Shop and Maintenance Supervisor Transfer to Forestry Section. -1 -1.00 $-34,834 Utility Crew Worker

-3 -3.00 $-156,206 Sanitation Supervisor Reduce three positions due to inspection functions assigned to Forestry Technicians.

-18 -18.00 $-597,085 Sanitation Worker Transfer title to Operations Driver Worker title to increase worker assignment flexibility.

-1 -1.00 $-33,938 Cart Maintenance Technician Reduce vacant position due to increase cart replacement funding.

196 2004 PLAN AND BUDGET SUMMARY DEPARTMENT OF PUBLIC WORKS – OPERATIONS DIVISION

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

14 14.00 0.25 $683,633 $7,500 Operations Driver Worker Transferred from Sanitation Worker title with net reduction of four positions.

-250 Emergency City Laborer (Aux.)

-18 Sanitation Crew Leader (Snow) Reduce un-needed vacant auxiliary positions. -19 Sanitation Worker (Aux.)

-10 Sanitation Supervisor (Winter Relief)

6 1.00 Sanitation Inspector Increase code inspection flexibility of staff.

9.22 Experience Adjustment

Forestry 1 1.00 $113,738 Environmental Services Supervisor Reclassification, position oversees Sanitation in addition to Forestry. -1 -1.00 $-110,217 City Forester

1 1.00 $38,634 Environmental Policy Analyst New position funded through recycling grant in Sanitation Section.

-1 -1.00 $-38,221 Engineering Draft Technician IV Reclassification. 1 1.00 $38,221 Landscape Designer

-1 -1.00 $-41,668 Technical Services Coordinator

1 1.00 $45,016 Technical Services Manager

-3 -3.00 $-130,193 Urban Forestry Technician Reclassified to streamline -3 -3.00 $-122,013 Forestry Inspector II enforcement of codes regulating weeds. 6 6.00 $265,986 Urban Forestry Technician

-2 Urban Forestry Technician (Aux.)

4 1.00 $40,000 Urban Forestry Technician (Aux.)

1 1.00 $61,608 Shop and Maintenance Supervisor Transfer from Sanitation Section. 1 1.00 $34,834 Utility Crew Leader

-6 -3.00 -3.00 $-121,498 $-100,000 Urban Forestry Specialist

-1 -1.00 $-32,363 Nursery Laborer Service reductions. -1 -1.00 $-34,834 Equipment Mechanic

-1 Equipment Mechanic III (Aux.)

0 7.10 -2.60 Experience Adjustment -464 -29.78 -1.00 $-1,389,923 $-84,429 TOTAL

2004 PLAN AND BUDGET SUMMARY 197 SPECIAL PURPOSE ACCOUNTS

EXECUTIVE SUMMARY

PURPOSE: Special purpose accounts are used to appropriate funds for purposes not included in departmental budgets. These accounts may include funding for short term programs, programs that affect numerous departments, or programs that warrant distinction from departmental budgets. Every year, the Common Council adopts a resolution that authorizes expenditure of funds from the various special purpose accounts by specific departments or by common council resolution.

Highlights of the 2004 special purpose accounts Information and Technology Study: In 2003, this (SPAs) include: account included $50,000 to study options for replacement of the Election Commission’s Voter Reg- Discontinued Accounts istry Database. No project is planned in 2004 and no funding is budgeted for this account. Aids Initiative: In 2003, this special purpose account provided $314,200 in tax levy funding for distribu- Pabst Theater Board Fund: In 2002, the Pabst Thea- tion to community agencies providing AIDS aware- ter was transferred from the city to the non-profit ness and prevention services. In 2004, the account is Cudahy Foundation. Provisions of that transfer no longer funded by the tax levy. Instead, commu- specified a one time payment of $150,000 in 2003 to nity-based AIDS initiatives will be funded using the assist in the transfer of the Theater Board function to city’s 2004 award of federal Community Develop- the Cudahy Foundation. This account is eliminated ment Block Grant funds in the 2004 budget.

City Employee Innovation Award Fund: This ac- Snow and Ice Control Fee City Portion: Created in count was created in 2003 and provided $10,000 to 2002, this account funded the city’s payment of the reward city employees for contributing towards the city snow and ice control fee. However, making a improved quality of city services. Due to difficulties payment to itself for services it provides to itself associated with implementing the program in a man- proved fiscally redundant. As a result, this account ner that proved equitable to all participants, no is eliminated in 2004. awards were given in 2003 and the program is being discontinued in 2004. Other Significant Highlights and Changes

Excess TID Funds: The 2003 budget included Actuarial Study of the Employer Reserve Fund: $1,055,000 as a payment to qualifying taxing jurisdic- This new special purpose account includes $50,000 to tions resulting from excess incremental tax revenue fund an actuarial study of the Employer Reserve from Tax Increment Districts #1 (Menomonee Valley Fund. The Employer Reserve Fund was established Industrial Area), #10 (Park East/Lake North Freeway in 2001 to reserve contributions from the city for the Corridors), and #26 (Tannery). In 2004, no excess purpose of offsetting future pension obligations. The TID funding is anticipated. actuarial study will assist in determining the level of funding provided for the Employer Reserve Fund in Handgun Violence Media Campaign: This SPA was future years. created in 2000 to provide matching funds for the public education component of Operation Ceasefire, Audit Fund: The Audit Fund has been increased in a joint law enforcement initiative aimed at reducing the 2004 budget by $40,000 to $210,000 to pay for the handgun violence. In 2004, the city will seek to pro- increased cost of contracting for a private audit of the vide funding for this purpose from other sources, city’s Comprehensive Annual Financial Report such as funds acquired through the forfeiture of as- (CAFR). sets seized by the Police Department.

2004 PLAN AND BUDGET SUMMARY 199 SPECIAL PURPOSE ACCOUNTS

Care of Prisoners Fund: A 2003 increase to the per city policies. The funding increase reflects increased diem rate paid to the county ($6.80 to $7.71) for per- insurance premium payments for 2004 sons incarcerated by the city at the County House of Corrections resulted in a $113,510 increase in 2003 Milwaukee Arts Board: This account provides budgeted funding for this purpose. However, cur- funding to community organizations to enhance and rent cost projections indicate that this increase was promote public art in the city. Funding for 2004 is greater than needed. Consequently, the account is reduced by $25,000 to $192,000. reduced by $80,000 to $200,000 in 2004. Receivership Fund: This account is used for abate- City Attorney Collection Contract: This account ment of any condition at a residential or commercial funds contracts with private collection companies for property that has been adjudicated to constitute a the collection of outstanding city receivables and nuisance or human health hazard. In 2004, this ac- overdue Municipal Court judgements. In 2003 the count is reduced by $100,000 to $300,000. This repre- Municipal Court implemented the Tax Refund Inter- sents an effort to prioritize nuisance abatements to cept Program as a strategy to collect overdue judg- reduce the cost of this program. ments. This program has been successful and has increased the collections processed, resulting in the Reserve for 27th Payroll: Every 11 years the city has increased cost for contracted collections services. a 27th employee pay period. The purpose of this ac- This account is increased by $250,000 to $1,250,000 in count is to amortize the cost of the 27 th payroll over 2004. an 11 year period in contrast to the normal 26 pay periods each year. The 2004 budget includes Contribution Fund: This account provides expen- $1,900,000 in this account based on the calculation of diture authority for contributions received during the 27th payroll needs in light of recent salary settlements year per City Ordinance 304-24. Funding for this and previous expenditures. account in the 2004 budget is $950,000 reflecting a $75,000 increase in anticipated contributions. Retirees Benefit Adjustment: The 2004 budget includes a decrease in funding of this account by Economic Development Committee Fund: This $49,800. Funding of $415,200 is provided for sup- fund is decreased by $30,000 in 2004 for total funding plemental pension benefits for certain non-ERS retir- of $20,000. ees.

Fire and Police Discipline and Citizen Complaint Unemployment Compensation Fund: This account Account: This account is reduced by $25,000 to pays the city’s portion of unemployment payments to $75,000 in 2004 to reflect expenditure experience in city employees who are separated from service. Due 2002. to increased expenditures in 2003, this account is increased by $400,000 to $1,200,000. Group Life Insurance Premium: This account funds the city’s obligations with respect to life insurance Wages Supplement Fund: This fund acts as a “sav- benefits for its employees. The account is increased ings account” for city salary and specified fringe by $78,200 to $2,683,200 in 2004 the standard 3% in- benefit costs while labor contracts are pending. A flationary increase over 2003 costs. funding increase of approximately $759,000 in 2004 (from $18,570,000 to $19,329,228) reflects anticipated Insurance Fund: Funding for this account has been wage and fringe benefit increases resulting from col- increased by $100,000 in 2004 to $700,000. This ac- lective bargaining agreements. count provides funding for insurance premiums for

200 2004 PLAN AND BUDGET SUMMARY SPECIAL PURPOSE ACCOUNTS REIMBURSABLE SERVICE ADVANCE FUND

The Reimbursable Service Advance Fund serves as a used to address greater than expected expenses mechanism for advancing funds to city departments when related to the generation of additional reve- to pay for services and materials which will subse- nue. quently be reimbursed through non-tax levy funding sources. Funds must be appropriated by Common Currently, increased costs relating to revenue gener- Council resolution. ating activities normally require a supplemental contingent fund appropriation. For example, an Funding for this account is provided by temporary increase in citation processing activity will likely transfer of general city funds in accordance with Sec. require a contingent fund appropriation to cover 925-130a, Wis. Acts 919. General city funds are then additional costs even though the increased activity reimbursed from revenues received from interde- results in greater than anticipated revenue to the partmental billings. This mechanism may also be city. A mechanism that would allow for recognition of additional revenue to offset increases in costs would help to preserve the contingent fund for other purposes.

CHANGE 2002* 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

Reimbursable Service Advance Fund $0 $50,000,001 $50,000,001 $0 Less Cost Recovery From Reimbursable Operations 0 -50,000,000 -50,000,000 0 TOTAL $0 $1 $1 $0 *Note: 2002 experience is reflected in departmental expenditures.

SEWER USER CHARGES

This account provides expenditure authority of with administering and collecting the sewer user $31,302,733 to pay the Milwaukee Metropolitan charge. The expenditure authority is offset, except Sewerage Commission’s sewer user charges. The for $1, by anticipated collection of the user charge account also covers the city’s expenses associated from sewer users in the city.

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

MMSD-Sewer User Charge Advance Fund Account $0 $31,369,498 $31,302,733 $-66,765 Less Cost Recovery from Sewer User Charge 0 -31,369,497 -31,302,732 66,765 TOTAL $0 $1 $1 $0 Note: The budget amounts are for the Reimbursable Service Advance Fund and Sewer User Charges which is included in the Special Purpose Account Miscellaneous total. This summary is provided for informational purposes only.

2004 PLAN AND BUDGET SUMMARY 201 SPECIAL PURPOSE ACCOUNT WORKER’S COMPENSATION

The Worker’s Compensation Special Purpose Ac- The 2004 budget for the worker’s compensation ex- count, administered by the Employee Benefits Divi- penses sub-account totals approximately $7.7 mil- sion of the Department of Employee Relations, con- lion, an increase of $0.7 million from the 2003 sists of two sub-accounts. One sub-account compen- budget. This appropriation is based upon previous sates city employees who incur job related injuries. full year and year-to-date experience. The second Recovery of payments from third parties helps to sub-account, Required Employer Law Compliance offset part of these workers’ compensation claims. A Expenses is budgeted at $73,590 for 2004. second sub-account, Required Employer Law Com- pliance Expenses, covers expenses incurred as a In total, the 2004 budget for these two sub-accounts result of exposure to bloodborne pathogens in the is $7.78 million. workplace, as mandated by the bloodborne patho- gen law.

SUMMARY OF EXPENDITURES

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

Worker's Compensation $7,149,302 $7,000,000 $7,705,000 $705,000 Required Employer Law Compliance Expenses 54,348 60,000 73,590 13,590 TOTAL $7,203,650 $7,060,000 $7,778,590 $718,590

202 2004 PLAN AND BUDGET SUMMARY SPECIAL PURPOSE ACCOUNT EMPLOYEE HEALTH CARE BENEFITS

This special purpose account covers employee health care costs for the self-insured Figure 1 Health Care Program (the “Basic” Plan), Health Maintenance Organizations (HMO’s), Basic Plan Net Cost Per Member dental insurance, administrative expenses, (1993 - 2002) and cost containment measures. The De- $6,000 partment of Employee Relations manages the account. $5,000

The 2004 employee health care budget is $4,000 approximately $79.9 million, a decrease of 1.2% from $80.9 million in 2003. Of the $79.9 $3,000 million, $75.9 million is provided for two types of health care plans; HMO’s and the $2,000 “Basic Plan”. An additional $2 million will be provided from funds carried over from 2003 $1,000 to 2004. This will provide total appropriations of $81.9 million in 2004. $0 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 HMO costs are paid on a per member basis, with rates set through annual contracts. Actual utilization and health care prices drive Figure 2 the expenses for Basic Plan coverage. Rising drug costs, increased usage, and an aging Health Care Budgets as a workforce are factors driving the city health Percentage of Total Property Tax Levy care costs. Figure 1 shows the growth in net cost per member of the Basic Plan from 1993 45% to 2002. 40% 35%

For 2003, the city is experiencing decreasing 30% basic plan costs. Part of the reason is due to decreasing enrollment in the Basic Plan and 25% increasing employee contributions. 20% However, other reasons for the decrease are 15% not so clear. Further research will determine 10% if this is a change in the cost trend or if it is just an anomaly. 5% 0% For 2004, the city received bids for the city’s 1996 1997 1998 1999 2000 2001 2002 2003 2004 HMO contract. The winning bid increased the HMO rates by 9.5%. far below the 15% increase that was expected. Due to this difference, the 2004 Rates: In 2003, HMO rates were negotiated for departmental request was reduced by $3.1 million. 2004. The re-negotiated rates increased 9.5% over 2003 rates. Approximately $2.4 million is provided Even with this slowing in the growth of health care in the 2004 budget to cover this increase. One costs, there is still tremendous pressure on the city’s provider is providing two HMO plans. tax levy. To illustrate, the percentage of the city’s property tax levy that funds health care has In 2004, management employees who choose the increased from 30.4% to 40.8% from 1996 to 2004 as Basic Plan health care coverage will be required to shown in Figure 2. pay an additional monthly contribution. The

2004 PLAN AND BUDGET SUMMARY 203 SPECIAL PURPOSE ACCOUNT - EMPLOYEE HEALTH CARE BENEFITS estimated cost is $186.46 per month for single Milwaukee must be part of any long term effort to coverage and $326.14 per month for family coverage. control health care costs.

Through negotiations, the members of the Police and Improve Health Care Quality Measurement: Un- Fire unions will pay $60 for single and $120 for fam- necessary spending that does not improve patient ily Basic Plan coverage per month. This is up from health (unneeded testing and treating with the the previous contribution of $25 for single and $50 wrong diagnosis) is wasteful and injurious. The for family. health care industry lags behind many others in quality improvement. Milwaukee has characteristics Coincidentally the change in the cost of the city’s that might allow it to lead other communities in this health care cost occurred simultaneously with in- area. creased interest by business leaders and consumers in rising health care costs. Promote Cost Effective Prescription Drug Use: The cost of prescription drugs has been increasing rap- The Mayor formed a Health Care Task Force in 2001 idly. In this area, the Health Department will seek to address the issue of rising health care costs. Their partnerships to find effective ways to promote the major recommendations included: use cost effective medications. Part of this effort will be to educate employees, employers, and clinicians Encourage Employee Health Care Choices: Real regarding the actual cost of medications and how to health care choice involves allowing employees to better control those costs. Improved benefit design select from multiple, easy-to-compare health plans should reward the clinically appropriate drug selec- that are priced on their efficiency and cost- tions. effectiveness. Choice allows health providers to compete with each other on the same basis. A Assure an Adequate Supply of Health Care Wor k- rational market can emerge when providers offering ers and Resources: There is a shortage of trained high value are rewarded by being identified and health care staff in the Milwaukee area. Addressing chosen by employees. the workforce shortage will require: 1) enhancing the image of health care workers; 2) developing Careful attention to benefit design by employers mentoring programs to encourage people to enter a helps control costs. Employers cannot give their health care field; 3) developing financial assistance employees access to any services without financial opportunities for residents to obtain training and impact on the employee or provider. education; and, 4) pursuing diversity initiatives.

Promote Health and Prevent Disease for a Health- Eliminate Legislative Obstacles: Laws that impact ier Milwaukee: Considerable health costs result the health care market remove the ability of provid- from preventable causes that could be addressed by ers and employees to react rationally. Subsidies community health promotion, disease prevention, produce inefficient service provisions or capital in- environmental health programs, and healthy public vestments. Some laws, however, produce social policy. good by providing health care services to those who cannot afford it. It is important to separate laws that Both employers and employees can reduce health promote poor social policy and those that produce care costs by promoting fitness. Creating a healthier overall good.

204 2004 PLAN AND BUDGET SUMMARY SPECIAL PURPOSE ACCOUNT - EMPLOYEE HEALTH CARE BENEFITS

SUMMARY OF EXPENDITURES

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

EXPENSE CATEGORY Claims $26,777,355 $27,900,000 $24,500,000 $-3,400,000 Health Maintenance Organizations 44,390,816 49,000,000 51,400,000 2,400,000 Dental Insurance 2,366,782 2,475,000 2,475,000 0 Administrative Expense 1,095,417 1,200,000 1,226,100 26,100 Cost Containment 286,905 300,000 300,000 0 TOTAL $74,917,275 $80,875,000 $79,901,100 $-973,900

2004 PLAN AND BUDGET SUMMARY 205 SPECIAL PURPOSE ACCOUNT BOARD OF ZONING APPEALS

BACKGROUND

The Board of Zoning Appeals (BOZA) is composed duty is to hear and decide appeals of rulings on city of five members appointed by the Mayor, subject to zoning ordinances. confirmation by the Common Council. The board’s

OBJECTIVE 1

Provide decisions on routine zoning appeals within 4 to 8 weeks of application and Outcome Indicators and Funding within 10 to 14 weeks for decisions on co m- 2002 2003 2004 plex or controversial appeals. Experience Budget Projection Average number of weeks OUTCOME HISTORY to complete a BOZA appeal. Several years ago, written decisions on BOZA Routine Appeals 4 6 4-8 cases took an average of 27 weeks between Complex Appeals 19.7 12 10-14 the customer’s application and a final letter Funding by Source: communicating the board’s decision. It took Operating Funds $237,893 $273,505 $276,521 slightly more than 12 of these 27 weeks for a Total: $237,893 $273,505 $276,521 case to be heard before the board, followed by a 15 week wait for a final decision letter. Figure 1 Due to revisions to the ordinances governing the appeals process and continuing process improvement initiatives, the board now aver- Average Number of Weeks ages less than six weeks to issue a written to Complete a BOZA Appeal * decision (see Figure 1). The board will con- 25 tinue its efforts to reduce this time frame by identifying efficiencies and streamlining pro- 20 cesses.

15 Ordinance revisions and process improvements have not only reduced the length of 10 time necessary to receive a written decision, they have increased the level of communica- 5 tion and coordination with customers and citizens. For example, a new web site allows 0 customers to receive application information 1998 1999 2000 2001 2002 and general assistance. The web site also * Based on the average of all appeals filed. provides an online database of zoning appeals as well as an archive of agendas and minutes. This information helps citizens and weeks. The Board of Zoning Appeals will dedicate neighborhood groups remain apprised of develop- $276,521 to meeting this goal. ments that are of concern to them. PROGRAM CHANGES In 2004, BOZA will continue to improve communication with customers and citizens and reduce the Web Site Improvements: The BOZA web site is waiting time for hearings. BOZA’s goal for 2004 is continually updated with agendas, minutes, and to hear and decide 75% of all cases within eight

206 2004 PLAN AND BUDGET SUMMARY SPECIAL PURPOSE ACCOUNT – BOARD OF ZONING APPEALS information about the appeals process. In 2004, the Efficiencies through Technology: BOZA has in- web site will be upgraded to allow viewers to access creased its efficiency by maximizing the new Master pictures of projects that have submitted applications Customer Database and other City of Milwaukee to the board. web products. They are expanding the customer’s ability to look up statuses on properties that may Information Sharing: The Board of Zoning Appeals have multiple addresses due to being on corners or along with the Development and Permit Center has from being large parcels. The “also-known-as” fea- created a Master Customer Database. This database ture will link properties with these multiple ad- allows for linking between BOZA applications and dresses. Development Center applications. Data fields such as contact names, addresses, phone numbers, and BOZA is also taking advantage of the City of Mil- fax numbers can be shared and automatically up- waukee’s COMPASS web site to save costs. Before, dated for either party. This allows these different BOZA had to request the Information and Technol- entities to share information and reduces the amount ogy Management Division (ITMD) of DOA to per- of data entry required, thus increasing efficiency and form GIS mapping to identify neighboring parcel communication. A person submitting an application owners of zoning variance applicants. ITMD then with the board will now be identified in this system, printed mailing labels so that BOZA could send if for example, they have already met with another those owners proper hearing notifications. By util- department regarding the same project. If that ap- izing the COMPASS Program, BOZA can now per- plicant’s contact information changes, either BOZA form this mapping process and print the envelopes or the Development Center can perform updates. for notification mailings itself.

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 3.00 3.00 3.00 0.00 FTEs - Other 0.00 0.00 0.00 0.00 Total Positions Authorized 11 11 11 0 DLH - Operations and Maintenance 5,025 5,400 5,400 0 DLH - Other Funds 0 0 0 0

EXPENDITURES Salaries and Wages $173,517 $181,051 $183,252 $2,201 Fringe Benefits 15,615 40,960 41,775 815 Operating Expenditures 48,761 51,494 51,494 0 Equipment 0 0 0 0 Special Funds 0 0 0 0 TOTAL $237,893 $273,505 $276,521 $3,016

REVENUES Licenses and Permits $127,662 $141,000 $169,600 $28,600 TOTAL $127,662 $141,000 $169,600 $28,600

CAPITAL PROJECTS - None

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS’ CHANGES - None

2004 PLAN AND BUDGET SUMMARY 207 SPECIAL PURPOSE ACCOUNTS SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED LINE DESCRIPTION Special Purpose Accounts - Miscellaneous Actuarial Study of Employers Reserve Fund $0 $0 $50,000 $50,000 AIDS Initiative 248,529 314,200 0 -314,200 Alternative Transportation for City Employees 80,000 95,000 95,000 0 Annual Payment to DNR 7,034 7,100 7,100 0 Audit Fund 141,000 170,000 210,000 40,000 Boards and Commissions Reimbursement Expense 18,890 19,000 20,000 1,000 Board of Ethics 16,292 23,101 24,101 1,000 BID #2 (Historic Third Ward) City Contribution 18,000 18,000 18,000 0 BID #2 (Historic Third Ward) Self-Supporting 221,894 0 0 0 BID #2 (Historic Third Ward) Loan Repayment 0 0 0 0 BID #3 (RiverWalk) Self-Supporting 0 0 0 0 BID #3 (RiverWalk) Loan Repayment 31,531 0 0 0 BID #4 (Greater Mitchell Street) City Contribution 25,000 25,000 25,000 0 BID #4 (Greater Mitchell Street) Self-Supporting 84,947 0 0 0 BID #5 (Westown) City Contribution 18,000 18,000 18,000 0 BID #5 (Westown) Self-Supporting 88,482 0 0 0 BID #8 (Historic King Drive) City Contribution 21,000 21,000 21,000 0 BID #8 (Historic King Drive) Self-Supporting 119,491 0 0 0 BID #9 (739 North Water RiverWalk) Loan Repayment 30,314 0 0 0 BID #9 (739 North Water RiverWalk) Self-Supporting 0 0 0 0 BID #10 (Avenues West) City Contribution 12,000 12,000 12,000 0 BID #10 (Avenues West) Self-Supporting 109,466 0 0 0 BID #11 (Brady Street Business Area) Self-Supporting 50,275 0 0 0 BID #11 (Brady Street Business Area) Loan Repayment 58,698 0 0 0 BID #13 (Oakland Avenue) Loan Repayment 24,355 0 0 0 BID #13 (Oakland Avenue) Self-Supporting 25,645 0 0 0 BID #15 (RiverWalk) Self-Supporting 10,000 0 0 0 BID #15 (RiverWalk) City Contribution 40,000 40,000 40,000 0 BID #15 (RiverWalk) Loan Repayment 292,605 0 0 0 BID #16 (Uptown Triangle) Loan Repayment 43,194 0 0 0 BID #16 (Uptown Triangle) Self-Supporting 37,294 0 0 0 BID #17 (Northwest Area Business) Loan Repayment 16,537 0 0 0 BID #17 (Northwest Area Business) Self-Supporting 18,463 0 0 0 BID #19 (Villard) Loan Repayment 24,100 0 0 0 BID #19 (Villard) Self-Supporting 64,335 0 0 0 BID #20 (North Avenue/Prospect/Farwell) Self-Supporting 63,808 0 0 0 BID #20 (North Avenue/Prospect/Farwell) Loan Repayment 69,500 0 0 0 BID #21 (Downtown Management District) Self-Supporting 2,064,715 0 0 0 BID #21 (Downtown Management District) City Contribution 35,000 35,000 35,000 0 BID #25 (Capitol Drive/RiverWorks) Self-Supporting 141,785 0 0 0 BID #26 (The Valley) Self-Supporting 30,826 0 0 0 BID #27 (Burleigh/Sherman) Self-Supporting 36,032 0 0 0 BIDs Self-Supporting 3,167,458 0 0 0 City Contribution 169,000 169,000 169,000 0 Loan Repayment 590,834 0 0 0 Total BIDs $3,927,292 $169,000 $169,000 $0 Cable TV Franchise Regulation $12,990 $20,000 $20,000 $0 Care of Prisoners Fund 192,879 280,000 200,000 -80,000 City Attorney Collection Contract 879,731 1,000,000 1,250,000 250,000 City Employee Innovation Award 0 10,000 0 -10,000 Clerk of Court - Witness Fees Fund 14,979 15,000 17,000 2,000 Constituent Service Referral System 28,536 0 0 0 Contribution Fund - General 0 875,000 950,000 75,000 Damages and Claims Fund 3,606,936 2,400,000 2,400,000 0 E-Government Citizen Response System 76,330 0 0 0 E-Government Payment Systems 0 80,000 50,000 -30,000 Economic Development Committee Fund 31,660 50,000 20,000 -30,000 Employee Training Fund 74,500 50,000 50,000 0 Excess TID Funds 0 1,055,000 0 -1,055,000 Fire and Police Discipline and Citizen Complaint 72,909 100,000 75,000 -25,000

208 2004 PLAN AND BUDGET SUMMARY SPECIAL PURPOSE ACCOUNTS SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

Firemen's Relief Fund 86,291 78,000 90,000 12,000 Flexible Spending Account 30,898 35,000 35,000 0 Graffiti Abatement Fund 136,402 145,000 145,000 0 Group Life Insurance Premium 2,386,170 2,605,000 2,683,200 78,200 Handgun Violence Media Campaign 50,000 50,000 0 -50,000 Information and Technology Study 0 50,000 0 -50,000 Insurance Fund 527,918 600,000 700,000 100,000 Long Term Disability Insurance 552,000 552,000 552,000 0 Low Interest Mortgage Loan Program 1,034 10,000 20,000 10,000 Maintenance of Essential Utility Services 73,345 75,000 75,000 0 Memberships, City 129,024 134,057 143,370 9,313 Milwaukee Arts Board Projects 213,722 217,000 192,000 -25,000 Milwaukee Fourth of July Commission 130,000 130,000 130,000 0 Municipal Court Intervention Program 430,481 393,652 415,000 21,348 Neighborhood Clean Up Initiative 69,977 70,000 69,000 -1,000 Outside Council/Expert Witness Fund 245,129 225,000 225,000 0 Pabst Theater Board Fund 150,000 150,000 0 -150,000 Pabst Theater Rent Fund 10,000 0 0 0 Razing and Vacant Building Protection Fund 1,793,230 1,450,000 1,450,000 0 Receivership Fund 0 400,000 300,000 -100,000 Reimbursable Services Advance Fund 0 50,000,001 50,000,001 0 Less Recover Reimbursable Services Advance Fund 0 -50,000,000 -50,000,000 0 Remission of Taxes Fund 655,029 500,000 500,000 0 Reserve for 27th Payroll 1,820,000 1,980,000 1,900,000 -80,000 Retirees Benefit Adjustment Fund 416,574 465,000 415,200 -49,800 Sewer Maintenance Fee 82,500 105,000 115,500 10,500 MMSD User Charge 0 31,369,498 31,302,733 -66,765 Less Recover - MMSD User Charge 0 -31,369,497 -31,302,732 66,765 Snow and Ice Control Fee City Portion 12,578 185,000 0 -185,000 State Lottery and Gaming Credit Recertification 0 0 0 0 Tuition Reimbursement Fund 700,000 750,000 760,000 10,000 Unemployment Compensation Fund 969,519 800,000 1,200,000 400,000 Wages Supplement Fund 0 18,570,000 19,329,228 759,228 Total Miscellaneous SPAs $21,102,308 $37,457,112 $37,051,701 $-405,411 Board of Zoning Appeals $237,893 $273,505 $276,521 $3,016 Workers' Compensation Fund 7,203,650 7,060,000 7,778,590 718,590 Employee Health Care Benefits Claims 26,777,355 27,900,000 24,500,000 -3,400,000 HMO 44,390,816 49,000,000 51,400,000 2,400,000 Dental Insurance 2,366,782 2,475,000 2,475,000 0 Administration Expenses 1,095,417 1,200,000 1,226,100 26,100 Cost Containment Program 286,905 300,000 300,000 0 Employee Health Care Subtotal $74,917,275 $80,875,000 $79,901,100 $-973,900 Intern Program $44,927 $0 $0 $0 GRAND TOTAL $103,506,053 $125,665,617 $125,007,912 $-657,705

2004 PLAN AND BUDGET SUMMARY 209 CITY TREASURER

EXECUTIVE SUMMARY

MISSION: To fulfill the duties and responsibilities of the independently, citywide elected City Treasurer, who serves as the chief investment and revenue collection officer of the City of Milwaukee, as set forth in Wisconsin State Statutes, the City of Milwaukee Charter and Code of Ordinances, and Common Council Resolutions.

STRATEGIC Fulfill the mission of the City Treasurer Department in an environment of fiscal constraint. ISSUES: Utilize technology wherever feasible and cost justified to compile and to transfer needed information.

Provide quality services to customers.

INITIATIVES Maintain high quality standards in providing tax collection services to city residents and in the FOR 2004: accounting and investment of city funds.

BACKGROUND

The City Treasurer is one of 24 elected officials One of the most important functions performed by within Milwaukee’s municipal government. Under the Treasurer’s Office is the investment of city funds authority provided by Wisconsin State Statutes and that are not needed immediately to meet current the Milwaukee City Charter, the Office of the City expenditures, i.e. property taxes and lump sum Treasurer receives and accounts for all monies paid revenue payments such as state shared revenue. In to the city, makes disbursements vouchered for making investment decisions, the Treasurer’s Office payment by the Comptroller, invests city funds that considers the safety, liquidity, and rate of return of are not needed to meet current expenditures, collects various investment instruments. The City Treas- current property taxes and delinquencies for all six urer’s 2004 budget totals approximately $2.9 million. tax levies within the City of Milwaukee, settles property tax collections on a pro-rata basis, and re- mits to each taxing jurisdiction their share of the monies collected.

OBJECTIVE 1 Outcome Indicators and Funding

Fulfill its mission to the satisfaction of the 2002 2003 2004 Milwaukee electorate as measured by the Experience Budget Projection Rate of return on investments. 1.73% 1.628% 1.25% rate of return on city investments and the State of Wisconsin Local Government 1.7288% TBD TBD cost of tax collection services. Investment Pool (LGIP) rate of return (benchmark). OUTCOME HISTORY Cost of tax collection as a percentage 0.3458% 0.3535% 0.3308% of total taxes collected. The City Treasurer is responsible for invest- ing available city fund balances. These bal- Total percentage of delinquent city 91.43% 85.00% 85.00% ances consist of tax dollars collected and property taxes collected after two years of the close of the levy. revenues received, including state shared revenue and aid payments, as well as various Funding by Source: fines and fees. Since the city’s cash flow re- Operating Funds $2,945,902 $3,023,860 $2,916,895 quirements do not always equal the current Total: $2,945,902 $3,023,860 $2,916,895

210 2004 PLAN AND BUDGET SUMMARY CITY TREASURER

Figure 1 fund balance, the city invests any funds that are not needed immediately into low-risk General Fund Investment Revenue investments. In turn, earnings from these 1999-2004 investments are used to reduce the tax levy. $9.00 $7.87 $8.00 The primary goal of the Treasurer is to maximize the city’s rate of return, while en- $7.00 $6.07 suring the safety of invested funds. The rate $6.00 $5.38 of return is a critical component in deter- $5.00 mining the amount of investment earnings. Due to market conditions, the Treasurer has (In Millions) $4.00 $2.94 obtained rates of return ranging between $3.00 1.73% and 6.26% during the period of 1999- $2.10 $1.875 $2.00 2002. As shown in Figure 1, this has trans- lated into city general fund investment reve- $1.00 1999 2000 2001 2002 2003 2004 nue of $2.94 million in 2002, a decrease of Estimate Estimate $2.44 million from the previous year. In 2004, the total city investment revenue is projected to be $2,812,500 with $1.875 million being Figure 2 credited to the General Fund and $937,500 million to the Public Debt Amortization Deliquent City Tax Collections Fund.

100% 99.77% The City Treasurer is responsible for the col- 99.79% 99.64% 98.66% 90% 94.81% lection of property taxes, including delin- 91.03% 91.62% 91.79% 80% quent taxes for all six levies within the city. 81.59% As seen in Figure 2, the Treasurer has been 70% successful at collecting almost 100% of the 60% total city levy and over 90% of the resulting 50% delinquent accounts. The Treasurer’s Office 40% strives to collect all delinquent property tax 30% 38.39% accounts. One of the ways that the depart- 20% ment has succeeded in its collection efforts is 10% by having the city’s collection agent, the 0% Kohn Law Firm, attempt to collect delinquent 1998 1999 2000 2001 Current Levy real estate property taxes for the period of six Percentage of City Levy Collected Percentage of City Delinquencies Collected months prior to the city taking legal action. An additional benefit of this approach should POSITION CHANGES be a reduction in the number of foreclosure actions against tax delinquent parcels, reducing the city’s The 2004 budget includes a number of position property management costs. changes. One vacant Customer Service Representa- tive I position is eliminated in the Customer Services ACTIVITIES Unit. To diminish any potential for increases in wait time, one position of Tax Enforcement Specialist is • Receive and account for all monies paid to the transferred to this unit from the Administrative city Services and Information System Support Unit and • Make disbursements that have been vouchered is being re-titled Tax Collection Specialist. The sup- for payment by the City Comptroller port staff structure in the Cash Management, In- • Invest city funds not needed immediately to vestments, and Financial Services Unit is restruc- meet current expenditures tured in the budget to mirror the structure in the • other sections of the department. As a result, one Collect property taxes and delinquent taxes of all position of Accounting Assistant II and one position six levies within the city of Office Assistant III are eliminated and two positions of Accounting Assistant I are added.

2004 PLAN AND BUDGET SUMMARY 211 CITY TREASURER

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 32.45 32.43 31.90 -0.53 FTEs - Other 0.00 0.00 0.00 0.00 Total Positions Authorized 65 61 60 -1 DLH - Operations and Maintenance 58,404 58,366 57,416 -950 DLH - Other Funds 0 0 0 0

EXPENDITURES Salaries and Wages $1,568,531 $1,565,595 $1,497,280 $-68,315 Fringe Benefits 577,906 579,270 553,995 -25,275 Operating Expenditures 727,405 859,505 783,590 -75,915 Equipment 6,198 0 0 0 Special Funds 65,862 19,490 82,030 62,540 TOTAL $2,945,902 $3,023,860 $2,916,895 $-106,965

REVENUES Charges for Services $144,537 $108,340 $103,650 $-4,690 Licenses and Permits 126,410 25,300 31,300 6,000 Taxes and Payment in Lieu of Taxes 3,615 3,500 3,500 0 Miscellaneous 2,673,186 2,100,000 1,875,000 -225,000 TOTAL $2,947,748 $2,237,140 $2,013,450 $-223,690

CAPITAL PROJECTS - None

ORGANIZATION CHART

City Treasurer

Deputy City Treasurer

Special Deputy City Treasurer

Administration Division Collection Division

212 2004 PLAN AND BUDGET SUMMARY CITY TREASURER

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason -1 -1.00 $-48,143 Administration Services Coordinator Technical change to reflect the Positions Ordinance. 1 1.00 $36,393 Program Assistant II

-1 -1.00 $-59,524 Tax Enforcement Specialist Position title change and technical correction to reflect the Positions 1 1.00 $41,977 Tax Collection Specialist Ordinance.

-1 -1.00 $-29,188 Customer Service Representative I Elimination of vacant position.

-1 -1.00 $-34,055 Accounting Assistant II Position changes creating similar -1 -1.00 $-29,236 Office Assistant III support staff structure as in other units. 2 2.00 $64,672 Accounting Assistant I

0.55 Temporary Customer Service Adjustment of direct labor hour Representative I allocation.

-0.08 Various Positions Overtime adjustment. -1 -0.53 $-57,104 TOTAL

2004 PLAN AND BUDGET SUMMARY 213 FRINGE BENEFIT OFFSET

Employee fringe benefit costs are appropriated in for employee benefits. The 2004 budget offsets this various special purpose accounts. In addition, de- “double” budget with a budget offset, as opposed to partment operating budgets include an estimated a revenue offset. This approach avoids overstating employee fringe benefit factor in order to reflect the the total city budget by the fringe benefit factor, total cost of department operations. In prior years which in 2004 amounts to approximately $98.9 mil- this second appropriation, or “double“ budget, was lion. offset by a “paper” revenue to avoid levying twice

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

Fringe Benefit Offset $-100,359,578 $-97,517,405 $-98,974,152 $-1,456,747

TOTAL $-100,359,578 $-97,517,405 $-98,974,152 $-1,456,747

214 2004 PLAN AND BUDGET SUMMARY SOURCE OF FUNDS FOR GENERAL CITY PURPOSES

EXECUTIVE SUMMARY

PURPOSE: To determine the amount of resources needed to support city services and to evaluate the most appropriate revenue stream for recovering costs, including general government revenue, user fees, and local taxes.

STRATEGIC In an ever competitive economy, local tax policy can be an important factor in decisions con- ISSUES: cerning residential and business investment. For Milwaukee to grow and prosper, local tax policies should not impede the expansion of the local economy.

Structural changes in the economy, originating well beyond the city’s borders are impacting Milwaukee’s fiscal environment. These changes have influenced, among other things, job trends in the city, tax base growth, and income trends. It is expected that structural change in the broader macro-economy will continue to influence fiscal conditions in Milwaukee well into the future.

INITIATIVES Limit the tax burden on local property owners by further diversifying the city’s revenue base. FOR 2004:

BACKGROUND Figure 1 A variety of revenue sources support the general city purpose budget (see Figure 1). General City Purpose Revenues By Source The largest of these, intergovernmental revenues and the property tax levy, together ac- Intergovernmental count for nearly three-fourths of total reve- Fringe Benefits nue for general city purposes. Nearly 50% of Property Taxes these revenues is in the form of state shared Taxes/PILOTs revenue. Charges

Miscellaneous The city has faced budgetary pressures from TSF Revenue Source the state since 1995 when the state first froze Fines/Forfeitures the level of funding for shared revenue. The Licenses/Permits freeze lasted until 2001. Cost Recovery

0% 10% 20% 30% 40% 50% 60% 70% In the 2002-2003 State Budget, the state in- Percent of Revenues creased funding for shared revenue, which 2004 1988 increased payments to cities by 1%. This increase was reflected in the city’s 2003 budget. Figure 2 shows that in 1998 approximately 55.4% of the general fund revenue were intergovernmental Unfortunately, by the time the 2004 shared revenue revenue. By 2004, intergovernmental revenue payment was being determined by the state, the dropped to 47.4% of total revenue. state was facing serious budgetary issues. In the end, the state cut $50 million from the program. The With a policy to hold the line on property taxes, less impact on the city was a reduction of approximately state shared revenue has increased the city’s efforts $9.8 million. to look not only at expenditure cuts but also at alternative funding sources. If new revenue options were The state shared revenue cuts reduce intergovern- not considered, the city could only resort to severe mental revenue as a percentage of total revenues. service cuts.

2004 PLAN AND BUDGET SUMMARY 215 SOURCE OF FUNDS FOR GENERAL CITY PURPOSES

Figure 2 To further illustrate the shared revenue problem, consider a scenario where shared Real Growth in Ingovermental Revenues 1990 to 2004 revenue grew at a rate of 2% annually from 1995 to the present. The city’s shared reve- 10% 56% nue payment would be $43.3 million higher 8% 55% than the amount received in 1995 and $37.4 54% million higher than the $230.8 million in- 6% 53% cluded in the 2004 budget. This $37.4 million 4% is roughly equivalent to the amount of fund- 52% 2% ing for the Library, Department of City De- 51% velopment, and the Health Department. 0% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 50% -2% Efforts to control property taxes have ex- 49% panded the gap between revenues and ex- -4% 48% penses. Not only is it important to control taxes because of resident pressure, it is vital -6% 47% to a continuing strong housing market and Intergovernmental Revenue Share of Total Revenue economic investment by the private sector. However, controlling taxes impacts the ability to provide services. Figure 3

Property taxes and intergovernmental reve- General City Purpose Revenues nues make up roughly 71.3% of general fund 1994 through 2004 revenue. The remaining revenues cannot be increased to offset the loss of shared revenue $500 let alone cover expenditures that are increasing faster than the rate of inflation. This $450 .. leaves choices of cuts in service or a large $400 new fee. The 2004 budget does not create any $350 new fees. In Millions $300

Overall, actual general city purpose revenues $250 have increased since 1994 but have grown at $200 a rate less than inflation (see Figure 3). As a 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 result, revenues have decreased in “real” or inflation adjusted terms. At the same time, Inflation Adjusted Budgeted Revenues costs continue to rise in response to the effects of inflation. Figure 4 The 2004 general city purpose budget is $496.6 million; an increase of $8.2 million or Intergovernmental Revenue 1.8% over the 2003 adopted budget. 1990 through 2004 In 2004, total revenues are expected to in- $300 crease by 1.8% over 2003 estimated levels, $250 which equals the projected rate of inflation .. for 2004 of 1.8%. A combination of expendi- $200 ture reductions and an adjustment to existing In Millions fees were used to maintain a balanced $150 budget. $100 Intergovernmental Revenue: These reve- $50 nues include funding received from other governmental jurisdictions, state and federal $0 aid formulas, grants, and other program spe- 1990 1992 1994 1996 1998 2000 2002 2004 cific government aids. From 1990, intergov- Budget Inflation Adjusted

216 2004 PLAN AND BUDGET SUMMARY SOURCE OF FUNDS FOR GENERAL CITY PURPOSES

ernmental revenues have experienced steady, Figure 5 though moderate, annual growth through 1998. Unfortunately, the city has experienced declining intergovernmental revenue in 1999 Charges for Service Revenue and 2001. 1990 through 2004 $60 The 2003-2005 State Budget decreased funding for shared revenue and the Expenditure $50 Restraint Program. Intergovernmental revenues not only decreased in nominal terms in $40 2004 but also in “real” or inflation-adjusted $30 dollars, a trend that started in 1993 (see In Millions Figure 4). $20 For the 2004 budget, intergovernmental reve- $10 nues total $273.5 million. Of this amount, $230.8 million will consist of state shared $0 revenues, $9.8 million less than received in 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2003. This represents a decrease of 4.1% from the 2003 amount. The city will receive $0.2 million more in expenditure restraint revenue. This source of general city purpose funding encom- passes revenue received for services provided by As shown in Figure 1, the city relies heavily on in- city operating departments. Public works charges tergovernmental revenues such as state shared reve- are the largest component, accounting for slightly nue which make up the majority of general revenues. over 50% of this revenue source. Charges for serv- The shared revenue program is intended to equalize ices revenue has increased almost every year since the ability of local governments to provide public 1990 (see Figure 5). The increase in 2004 is due to a services. Milwaukee receives a sizeable payment shift of the paramedic contract from a grant to reve- since it has proportionally lower levels of wealth nue offset. This accounted for $4.9 million of the $6 compared to other cities in the state. Unfortunately, million increase from 2003 budget. the equalizing effects of the program are not always apparent. The Solid Waste Fee is maintained at $75 and will generate $13.9 million. The Snow and Ice Control Property Taxes: The property tax levy will provide Fee is also maintained at its current rate of $0.2736 $85.2 million in revenue for the general city purposes per foot of property frontage and will generate $2.4 budget in 2004. This represents an increase of $0.5 million. million from the 2003 levy for general city purposes. The levy for all tax supported purposes increased to Leaf pickup and street sweeping costs are recovered $199 million from the 2003 level of $197 million. through the Sewer Maintenance Fee. These will be in the form of charges to the Sewer Fund from the Taxes and Payments in Lieu of Taxes: The 2004 Department of Public Works Operations Division. budget includes an estimated $12 million in revenue Total revenues received for this service is $4.2 mil- attributable to taxes and Payments in Lieu of Taxes lion. (PILOTs). These funds include revenues raised by non-property tax levies; occupation taxes; trailer Miscellaneous Revenues: Miscellaneous revenues park taxes; principal, interest, and penalties on de- include transfers from the Parking Fund, interest on linquent taxes; property tax adjustments; and pay- investments, funds from the sale of surplus prop- ments from property tax exempt governmental enti- erty, real estate property sales, several spending ties for city services. Revenue from 2004 interest and offset accounts, and other revenues not included in penalties increased $0.4 million from the final esti- any other category. For 2004, these revenues are mates contained in the 2003 budget. The increase is expected to total $20.4 million. attributable to a change in the interest rate charged on delinquent taxes from 12% to 18% annually. The Parking Fund will provide a payment to the General Fund that is equal to the net revenue gener- Charges for Services: The 2004 budget includes ated from parking citations. In 2004, the Department $57.4 million in revenue from charges for services. of Public Works (DPW) collected citation revenues

2004 PLAN AND BUDGET SUMMARY 217 SOURCE OF FUNDS FOR GENERAL CITY PURPOSES will first pass through the Parking Fund to allow for the benefit costs associated with activities in those payment of citation processing costs before making funds. their way back to the General Fund in a net revenue form. The payment will be $12 million in 2004. This Cost Recovery: Cost Recovery Funds do not repre- is an increase of $3.7 million from the $8.3 million sent an actual revenue to the city. They offset tax payment made in 2003. levy funds included in departmental equipment rental accounts to pay the depreciation portion of Two-thirds of the interest on the city’s unrestricted internal service agency charges. investments is counted as general city purpose revenue (one-third accrues to the Public Debt Amortiza- Tax Stabilization Fund: The Tax Stabilization Fund tion Fund). For 2004, a 1.25% rate of return on unre- (TSF) is used to accumulate unexpended appropria- stricted investments of approximately $225 million is tions and revenue surpluses. A total of $13.9 million assumed. This translates into $1.9 million in general was transferred into the fund at the end of 2002. The city purpose revenue (two-thirds of the $2.7 million purpose of the fund is to assist in stabilizing the in estimated interest earnings), down $0.22 million city’s tax rate and to protect citizens from tax rate from the budget adopted for 2003. fluctuations that can result from failure to capture accurate property values in non-reassessment years Fines and Forfeitures: Revenue of $4.8 million re- and erratic variations in non-property tax revenues. lated to fines and forfeitures is included in the 2004 budget. Fines and forfeitures include payments The balance in the fund (as of April 15, 2002) totals received from individuals as penalties for violating $33.7 million. After the 2004 withdrawal, $16.9 mil- municipal laws. The $4.8 million is an increase of lion will remain in the TSF in 2003. Combined with $0.7 million from 2003. This increase is related to the anticipated regeneration of $13.4 million, the TSF Tax Intercept Program that allows the courts to re- should end 2003 with a fund balance of at least $30.2 ceive payments from individuals through a reduc- million. The 2004 withdrawal represents 50% of the tion to their income tax returns by the amount owed available fund balance and an increase of $7.6 mil- to the city. lion from 2004 levels. The 2004 TSF withdrawal totals $16.9 million. Licenses and Permits: Revenue from licenses and permits in 2004 is estimated at $10 million, an in- The TSF policy, with the 2002 budget, suggested the crease of $1 million from 2003. These funds include city maintain a balance in the fund of 5% of the three charges for legal permission to engage in a business, year average General Fund expenditures. The 2004 occupation, or other regulated activity. TSF withdrawal follows the policy guidelines, leaving a balance of approximately 5.6% of the city’s Fringe Benefits: The fringe benefit costs associated 2002 General Fund expenditures. If the fund balance with reimbursable, grants, enterprise funds, and falls below that level, withdrawals for tax purposes capital activity are gross budgeted in the General will be limited to prior year fund regeneration (see Fund. The fringe benefit offset provides a payment Basis of Budgeting for further details). to the General Fund from these other funds to offset

218 2004 PLAN AND BUDGET SUMMARY SOURCE OF FUNDS FOR GENERAL CITY PURPOSES

2. SOURCE OF FUNDS FOR GENERAL CITY PURPOSES

CHANGE 2001 2002 2003 2004 2004 ADOPTED ACTUAL ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURE EXPENDITURE BUDGET BUDGET 2003 ADOPTED REVENUES IN DOLLARS

TAXES AND PAYMENTS IN LIEU OF TAXES Housing Authority $918,338 $903,288 $920,000 $890,000 $-30,000 Parking 1,209,550 1,220,782 1,312,000 1,150,000 -162,000 Water Services Division 8,030,879 7,974,459 8,091,000 8,050,000 -41,000 Trailer Park Taxes 116,555 141,854 110,000 120,000 10,000 Occupational Taxes 23,474 3,615 3,500 3,500 0 Payment in Lieu of Taxes Other 348,206 336,756 175,000 280,000 105,000 Interest/Penalties on Taxes 1,237,761 1,099,768 890,000 1,260,000 370,000 TID Excess Revenue 755,966 0 1,375,000 0 -1,375,000 Other Taxes 47,573 459,250 0 200,000 200,000 TOTAL TAXES $12,688,302 $12,139,772 $12,876,500 $11,953,500 $-923,000

LICENSES AND PERMITS

LICENSES Amusement Dance/Music $692,076 $586,146 $610,000 $745,000 $135,000 Bicycle 50 293 0 0 0 Dog and Cat 31,200 126,410 25,300 31,300 6,000 Food Health Department 1,365,513 1,374,755 1,425,400 1,350,400 -75,000 Health Department Non-Food 22,630 37,568 22,200 22,000 -200 Liquor and Malt 903,924 997,343 840,000 980,000 140,000 Scales 229,080 206,328 227,200 206,800 -20,400 Miscellaneous City Clerk 16,271 0 7,000 4,000 -3,000 Miscellaneous Department of Neighborhood Services 296,294 302,177 250,300 304,900 54,600 Miscellaneous DPW Administration 13,514 15,278 13,000 13,000 0

PERMITS Board of Zoning Appeals $204,470 $127,662 $141,000 $169,600 $28,600 Zoning Change Fees 20,570 110,221 25,000 63,000 38,000 Building 2,106,233 2,240,448 1,809,600 2,039,500 229,900 Building Code Compliance 267,725 213,300 140,000 140,000 0 Curb Space Special Privilege 32,030 84,534 14,000 80,000 66,000 Electrical 612,653 719,384 550,000 695,000 145,000 Elevator 103,402 148,100 115,000 120,000 5,000 Occupancy 313,225 360,962 240,000 275,000 35,000 Plumbing 694,473 679,139 608,000 717,000 109,000 Miscellaneous Department of Neighborhood Services 57,726 25,988 45,900 36,800 -9,100 Sign and Billboard 108,381 43,740 107,000 71,000 -36,000 Special Events 161,653 180,794 190,000 175,000 -15,000 Miscellaneous Department of Public Works 262,551 273,369 214,800 239,300 24,500 Special Privilege Miscellaneous City Clerk 4,160 13,312 10,000 13,700 3,700 Special Privilege Miscellaneous Neighborhood Services 190,389 359,661 190,000 200,000 10,000 Sprinkler Inspection 427,006 88,538 50,000 50,000 0 Use of Streets Excavating 783,977 802,519 616,000 704,500 88,500 Plan Exam Department of City Development 565,047 696,110 567,000 578,500 11,500 TOTAL LICENSES AND PERMITS $10,486,223 $10,814,079 $9,053,700 $10,025,300 $971,600

INTERGOVERNMENTAL REVENUE State Shared Revenues Fire Insurance Premium $583,111 $675,812 $580,000 $750,000 $170,000 Local Street Aids 27,705,802 26,785,538 26,700,000 26,550,000 -150,000 Payment for Municipal Services 2,006,630 2,396,129 2,684,856 2,550,000 -134,856

2004 PLAN AND BUDGET SUMMARY 219 SOURCE OF FUNDS FOR GENERAL CITY PURPOSES

CHANGE 2001 2002 2003 2004 2004 ADOPTED ACTUAL ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURE EXPENDITURE BUDGET BUDGET 2003 ADOPTED

State Payments Police 569,726 675,960 575,000 516,000 -59,000 State Shared Revenue (General) 235,887,915 238,181,655 240,521,000 230,750,000 -9,771,000 Other State Payments 7,876 7,034 7,100 7,000 -100 Expenditure Restraint Aid 7,792,065 10,048,320 9,400,000 9,625,000 225,000 Computer Exemption Aid 4,415,345 4,297,248 3,750,000 2,800,000 -950,000 TOTAL INTERGOVERNMENTAL REVENUES $278,968,470 $283,067,696 $284,217,956 $273,548,000 $-10,669,956

CHARGES FOR SERVICES

GENERAL GOVERNMENT City Attorney $2,028,464 $942,722 $322,900 $373,300 $50,400 Department of Employee Relations 320,786 307,854 300,000 205,000 -95,000 City Treasurer 183,249 144,537 108,340 103,650 -4,690 Common Council City Clerk 3,442,303 3,532,827 3,014,400 3,514,200 499,800 Comptroller 395,194 390,909 530,000 213,000 -317,000 BID Assessment 4,435,924 3,759,790 0 0 0 Deferred Compensation 760,663 813,547 0 0 0 Election Commission 8,489 13,267 7,500 13,000 5,500 Municipal Court 1,164,192 1,619,894 1,150,800 1,253,100 102,300 Public Debt Commission 113,595 178,016 195,000 190,000 -5,000 Assessor 2,448 31,154 1,000 2,000 1,000 Department of City Development 30,503 420,284 447,200 383,700 -63,500 Department of Administration 352,174 85,003 104,000 64,550 -39,450 MPS Service Charges 3,294,041 3,406,214 3,501,500 3,557,600 56,100 Fire Department 1,742,037 1,633,325 1,450,500 6,093,304 4,642,804 Police Department 266,857 319,958 191,500 241,500 50,000 Department of Neighborhood Services 2,346,514 3,675,475 1,933,500 3,038,700 1,105,200 Building Razing 1,708,966 1,104,230 1,202,500 1,090,000 -112,500 Fire Prevention Inspections 1,092,337 1,261,356 1,055,000 1,075,000 20,000 Essential Services 88,525 87,755 66,000 70,000 4,000 DPW Operations Buildings and Fleet 4,074,504 4,618,055 3,888,000 3,756,700 -131,300 Department of Public Works Infrastructure Services 2,428,356 3,143,691 3,005,000 2,945,500 -59,500 Department of Public Works Operations Forestry 95,512 370,530 100,000 225,000 125,000 Harbor Commission 3,985,312 3,453,522 3,280,923 3,422,909 141,986 Department of Public Works Administrative Services 2,089,332 1,350,342 819,000 826,500 7,500 Department of Public Works Operations Sanitation 0 1,021,896 510,000 540,000 30,000 Solid Waste Fee 0 14,097,921 13,875,000 13,875,000 0 Snow and Ice Control Fee 0 2,451,109 2,400,000 2,400,000 0 Street Sweeping and Leaf Control 0 3,845,000 4,086,101 4,200,000 113,899 Apartment Garbage Collection 0 833,600 800,000 800,000 0 Health Department 716,634 876,999 576,200 579,000 2,800 Public Library 479,520 441,802 444,000 451,400 7,400 County Federated System 1,815,530 1,865,781 1,815,000 1,873,000 58,000 Department Central Services Cost Recovered 2,241 0 0 0 0 TOTAL CHARGES FOR SERVICES $39,464,202 $62,098,365 $51,180,864 $57,376,613 $6,195,749

FINES AND FORFEITURES Municipal Court $4,402,849 $5,209,573 $4,113,000 $4,784,700 $671,700 TOTAL FINES AND FORFEITURES $4,402,849 $5,209,573 $4,113,000 $4,784,700 $671,700

MISCELLANEOUS REVENUES Parking Fund Transfer $15,046,495 $8,250,000 $8,300,000 $12,000,000 $3,700,000 Interest on Temporary Investments 4,802,266 2,673,186 2,100,000 1,875,000 -225,000 Contributions 675,000 624,332 875,000 950,000 75,000 Department of Administration Property Sales 251,189 271,880 146,500 133,500 -13,000 Department of City Development Property Sales 133,045 87,202 50,000 50,000 0

220 2004 PLAN AND BUDGET SUMMARY SOURCE OF FUNDS FOR GENERAL CITY PURPOSES

CHANGE 2001 2002 2003 2004 2004 ADOPTED ACTUAL ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURE EXPENDITURE BUDGET BUDGET 2003 ADOPTED

Department of Public Works Operations Rent 242,348 241,518 242,100 220,000 -22,100 Comptroller Rent 139,545 151,333 141,000 136,000 -5,000 Department of City Development Rent 441,934 537,683 250,000 365,000 115,000 Other Miscellaneous 425,764 1,006,841 163,000 298,200 135,200 Flexible Spending 7,164 1,394 0 0 0 Potawatomi 3,380,000 3,673,670 3,380,000 3,380,000 0 LIMP Revenue 84,660 60,363 85,000 40,000 -45,000 Harbor Commission Transfer 956,750 960,000 960,000 960,000 0 TOTAL MISCELLANEOUS REVENUE $26,586,160 $18,539,402 $16,692,600 $20,407,700 $3,715,100

FRINGE BENEFITS Fringe Benefit Offset $22,197,836 $18,711,469 $16,250,000 $16,500,000 $250,000 TOTAL FRINGE BENEFITS $22,197,836 $18,711,469 $16,250,000 $16,500,000 $250,000

COST RECOVERY Sewer Maintenance $10,000 $10,000 $10,000 $10,000 $0 TOTAL COST RECOVERY $10,000 $10,000 $10,000 $10,000 $0

TOTAL GENERAL FUND REVENUE $394,804,042 $410,590,356 $394,394,620 $394,605,813 $211,193

Amount to be Raised Pursuant to 18-02-6 $81,760,767 $85,364,442 $94,034,381 $102,025,728 $7,991,347 Less: Tax Stabilization Fund Withdrawal (Sustainable) $5,500,000 $11,000,000 $9,300,000 $16,870,000 $7,570,000 Property Tax Levy 76,260,767 74,364,442 84,734,381 85,155,728 421,347 TOTAL SOURCE OF FUNDS FOR GENERAL CITY $476,564,809 $495,954,798 $488,429,001 $496,631,541 $8,202,540 PURPOSES

2004 PLAN AND BUDGET SUMMARY 221 B. PROVISION FOR EMPLOYES’ RETIREMENT FUND

EXECUTIVE SUMMARY

PURPOSE: To provide the means by which the city can track and monitor retirement related expenditures and resources.

STRATEGIC Maintain the health of the retirement related funds in an era of increasing costs and variable ISSUES: earnings.

BACKGROUND

The Employes’ Retirement Fund includes provisions The Policemen’s Annuity and Benefit Fund (PABF) for employee pensions, the Police and Annuity Fund, administers pensions for city Police Officers em- the Firemen Pension Fund, social security contribu- ployed prior to 1947. There were 239 members as of tions, and the city’s Deferred Compensation Pro- July 31, 2003. Police Officers who started working gram. for the city after 1947 are covered by the Employes’ Retirement System. The Employes’ Retirement System (ERS) is responsible for administering the city’s defined benefit pen- Funds in the Firemen’s Pension Fund are provided sion plan for city employees and other members of for retired Fire Fighters who were employed prior to the system. The system operates under the direction 1947. This fund had 182 members as of July 31, 2003. of the Annuity and Pension Board, a body of eight Fire Fighters who started working for the city after members (three elected by active system members, 1947 are members of the ERS. one by city retirees, three appointed by the President of the Common Council, and the City Comptroller, The Former Town of Lake Employes’ Retirement ex-officio). Retirement contributions for employees Fund provides retirement benefits to former Town of of the Milwaukee Metropolitan Sewerage District, Lake employees who became city employees when the Wisconsin Center District, the Water Works, the Town of Lake was annexed. At the present time Milwaukee Public School Board (excluding teachers), there are five members. and the Milwaukee Area Technical College are borne by those respective governmental units and are not ERS also oversees the city’s contribution for pay- included in these appropriations. There were ap- ment of the employer’s share of social security tax. proximately 27,000 members in the system as of The Deferred Compensation Board is responsible for December 31, 2002. administration of the city’s Deferred Compensation Plan.

ACTIVITIES

Annuity Contribution: In the 2004 budget, $21.4 Pension Reserve Fund: The 2004 budget includes a million is provided for the city’s share of employees’ $2.5 million city contribution to the Employers Re- annuity contributions (5.5% of pay for general city serve Fund. This will allow the city to reduce future employees and 7% for Police Officers, Fire Fighters, liability and risk if the rate of return on investment and elected officials). falls below the actuarial estimate. An actuarial study will be conducted in 2004 to determine the extent of Social Security Payments: In the 2004 budget, $16.7 the city’s future liability and develop a payment million is provided for social security payments. schedule that addresses this future obligation.

Administration: In the 2004 budget, ERS adminis- Employer’s Pension Contribution (ERS) : The 2004 trative costs have essentially remained unchanged budget includes $36,740 in funding for duty disabil- from the 2003 budgeted total of $24 million, with a ity payments for non-consenters of the Global Pen- decrease of $134,390. sion Settlement.

222 2004 PLAN AND BUDGET SUMMARY B. PROVISION FOR EMPLOYES’ RETIREMENT FUND

Employer’s Pension Contribution (PABF) : The licemen’s Annuity and Benefit Fund. This liability 2004 budget includes an additional $470,000 to fund amount will be amortized beginning in 2004 over the part of the unfunded past service liability in the Po- next five years.

OTHER ACTIVITIES AND CHANGES

Lump-Sum Contribution for Firemen’s and Police total of $1 million is provided in the 2004 budget for Annuity and Benefit Fund (F&PABF): As in 2003, a a pension supplement to members of these funds.

SUMMARY OF EXPENDITURES

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

BUDGETS Firemen's Pension Fund Employer's Pension Contribution $263,000 $296,000 $267,500 $-28,500 Lump-Sum Supplement Contribution 0 500,000 500,000 0 SUBTOTAL $263,000 $796,000 $767,500 $-28,500 Policemen's Pension Fund Employer's Pension Contribution $360,513 $473,708 $975,773 $502,065 Administration 96,086 106,295 104,107 -2,188 Annuity Contribution 3,641 5,000 0 -5,000 Lump-Sum Supplement Contribution 150,000 500,000 500,000 0 SUBTOTAL $610,240 $1,085,003 $1,579,880 $494,877 Employes' Retirement Fund Employer's Pension Contribution $0 $205,000 $36,740 $-168,260 Administration 19,764,113 24,006,425 23,872,035 -134,390 Annuity Contribution - Tax Levy 20,452,173 20,153,000 21,412,000 1,259,000 Annuity Contribution - Reserve Fund 1,000,000 3,000,000 2,450,000 -550,000 SUBTOTAL $41,216,286 $47,364,425 $47,770,775 $406,350 Social Security Tax $15,971,827 $16,136,000 $16,680,500 $544,500 Former Town of Lake Employes' Fund Employer's Pension Contribution $114,799 $114,799 $176,000 $61,201 Firemen's Pension Fund 28,104 28,850 28,850 0 SUBTOTAL $142,903 $143,649 $204,850 $61,201 Deferred Compensation Plan $841,712 $1,109,917 $1,168,982 $59,065 TOTAL $59,045,968 $66,634,994 $68,172,487 $1,537,493

REVENUES Fringe Benefits - Pensions $682,235 $775,134 $802,267 $27,133 Charges for Service - ERS 19,669,609 23,812,611 23,659,000 -153,611 Charges for Service - Deferred Compensation 813,547 1,109,917 1,168,982 59,065 Property Tax Levy 38,090,209 40,937,332 42,386,238 1,448,906 Miscellaneous - ERS -445 0 156,000 156,000 TOTAL $59,255,155 $66,634,994 $68,172,487 $1,537,493

2004 PLAN AND BUDGET SUMMARY 223 EMPLOYES’ RETIREMENT SYSTEM

EXECUTIVE SUMMARY

MISSION: To administer the payment of retirement and other benefits to eligible persons as provided under the city charter and to safeguard and protect the funds of the Employes’ Retirement System (ERS) and to invest them in a prudent and vigilant manner.

STRATEGIC Maintain the financial health of the pension fund through sound financial and investment ISSUES: management techniques.

Respond in a timely manner to requests for information from pension system members, city departments and agencies, and outside entities.

Improve the efficiency and responsiveness of the system’s administration through automation.

INITIATIVES Monitor and analyze all investment activities and provide oversight of the investment portfo- FOR 2004: lio so as to maximize returns while minimizing the variability of the fund’s asset value.

Continue implementation and installation of a Pension Management Information System (PMIS) and a document management/imaging system which will improve benefit administration and to remediate existing data sources to ensure date integrity in the new system.

Continue to improve internal control issues to properly safeguard pension assets.

Continue improvements to member communication through the ERS website, pre-retirement counseling seminars, brochures, and newsletters.

BACKGROUND

The Employes’ Retirement System of the City of Milwaukee was created by an act of the Figure 1 Wisconsin Legislature in 1937 to provide retirement related benefits for members and Market Value of Fund their beneficiaries. ERS also administers the (As of December 31, 2002) city’s contribution for payment of the em- 4.5 ployer’s share of social security as well as the 4.0

Group Life Insurance Program for city work- 3.5 ers and COBRA health care for retirees. As of December 31, 2002 there were approxi- 3.0 mately 27,051 members (actives, inactives, 2.5 and retirees) in the system and the value of 2.0 the fund stood at an estimated $3.4 billion. In Billions 1.5 Figure 1 shows growth in the value of the fund over time. The fund’s returns reflect 1.0 economic and market conditions with strong 0.5 returns in the bull market from 1995 to 1999. 0.0 The 2000 through 2002 returns reflect the 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 recent recession with a 2.9% return in 2000; - 1.9% in 2001; and –9.4% in 2002. Over the five year period ending December 31, 2002,

224 2004 PLAN AND BUDGET SUMMARY EMPLOYES’ RETIREMENT SYSTEM the fund experienced an annualized return of 3.0% administration of the system. The Secretary and net of fees. Executive Director function under the direction of the board and are responsible for daily operation of The Annuity and Pension Board is trustee of the the office. funds in the system and is charged with general

OBJECTIVE 1

Achieve a higher than average rate of return on the fund over a full market cycle as Outcome Indicators and Funding measured by exceeding the rate of return of the Blended Benchmark Index by .5%. 2002 2003 2004 Experience Budget Projection OUTCOME HISTORY Exceed the rate of return 0.8% 1.0% 0.5% of the Blended Benchmark Index. To attract, hire, and retain quality employees, the city must provide employee benefits Funding by Source: competitive with those available in the pri- Operating Funds $11,892,647 $13,866,434 $13,955,772 vate market. In an era of increasing uncer- Total: $11,892,647 $13,866,434 $13,955,772 tainty about the funding of social security and increased longevity of employees, re- Figure 2 tirement benefits are an area of growing concern to both prospective and current employees. Comparison of ERS Fund Rate of Return with Blended Benchmark (1993-2002)

An important objective of ERS is to manage 30% the retirement fund prudently and efficiently 25% so that sufficient resources will be available in the future to pay retirees’ pension benefits 20% as defined by the City Charter. To meet this 15% objective, ERS strives to achieve a balance 10% between high returns and variability of the 5% fund’s asset value. Both theory and evidence 0% strongly support that a tradeoff exists be- 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 tween these two objectives; that is, the higher -5% the return of the fund, the greater its vari- -10% ability. In essence, a higher than average -15% return on a stock or bond is an investor’s ERS Fund Net Return ERS Net Return Less Blended reward for taking on additional risk and ac- cepting the potential for greater variability. In 2004, the department will allocate $14 million weighted according to the asset allocation strategy towards meeting this objective. adopted by the Annuity and Pension Board.

Program Result Measures: To measure the fund’s Over the long term, ERS’ objective is for the fund to performance, ERS compares the return of the retire- outperform the blended benchmark by 1.0% points. ment fund against a blended benchmark index con- ERS’ asset allocation strategy is designed to take sisting of the following indices: Russell 3000 Stock advantage of long term investment and market Index, the Lehman Brothers Aggregate Bond Index, trends that occur over the life of an investment cycle. the Morgan Stanley Capital International EAFE (Europe, Australiasia, Far East) Index and the As seen in Figure 2, the funds’ rate of return net of NCREIF Index. The NCREIF Index pertains to real fees paid to investment managers, exceeded the estate investments. The blended benchmark is blended benchmark by 4.0% in 1997, fell below the blended benchmark in 1998 by 4.5%, and in 1999 by

2004 PLAN AND BUDGET SUMMARY 225 EMPLOYES’ RETIREMENT SYSTEM

.7% but exceeded the blended benchmark in 2000 by • Select and negotiate money management con- 4.9%, in 2001 by 4.1%, and .8% in 2002. tracts • Monitor and evaluate money manager returns, Another benchmark for comparison purposes is the investment strategies, and adherence to stated fund’s policy of 8.5% return on the assets of the investment goals and objectives fund. This policy is the actuarial assumed rate of return that approximately covers the growth of li- PROGRAM CHANGES abilities of the fund; i.e., the pensions owed to present and future retirees. For the five year period Money Management Contracts, Investment Fees, ending December 31, 2002 the fund’s annual rate of and ERS Administrative Costs: Actual expendi- return was 3.0% net of fees, trailing the 8.5% actuar- tures in 2004 will depend on how well the money ial rate. Since inception, the fund’s annual return managers perform. In accordance with the Global has been 9.7% net of fees. Pension Settlement Agreement, all management contracts, investment fees, and administration ex- ACTIVITIES penses are paid from fund assets making the financing of ERS consistent with the standards of the • Design and update the fund’s asset allocation industry. and investment policy

OBJECTIVE 2 Outcome Indicators and Funding Maintain high levels of customer service for active and separated members, and retirees 2002 2003 2004 for all services provided by ERS by exceed- Experience Budget Projection ing a 95% favorable rating on customer sat- Exceed 95% favorable 100.0% 90.0% 95.0% rating on customer (4th Qtr) isfaction surveys. satisfaction surveys.

OUTCOME HISTORY Funding by Source: Operating Funds $5,735,566 $4,064,845 $4,796,402 Essential to the goal of customer service ex- Total: $5,735,566 $4,064,845 $4,796,402 cellence, is the ability of ERS to attract and retain the most qualified employees through Figure 3 a hiring process that combines an internal upward mobility approach and a community Membership Trends 1989 - 2002 outreach effort. The focus for 2003 was to promote customer service through staff 30,000 training and member awareness. Each employee receives extensive pension related 25,000 training in order to provide uniform application of ERS policies and procedures. Coun- 20,000 selors are enrolled in programs that will pro- 15,000 vide them with certifications in the area of pension benefit administration. 10,000

Customer service is enhanced through a se- 5,000 ries of public awareness projects. A retiree newsletter is issued monthly in order to keep 0 members informed on a variety of issues 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 including the Global Pension Settlement, tax Active and Inactive Retired issues, and health insurance issues. Thou- sands of letters are generated to inform individuals active web site and telephone system also enhance of their specific entitlements and answers to their customer service delivery. questions. Community presentation and pre- retirement seminars are conducted regularly. New ERS interacts with city employees on a variety of member handbooks, brochures, and a partially inter- levels. It provides general information, generates

226 2004 PLAN AND BUDGET SUMMARY EMPLOYES’ RETIREMENT SYSTEM pension estimates, researches member history files, pointments through the use of reception cards. The conducts one-on-one counseling sessions, deter- goal is to exceed the 95% satisfaction level in all ar- mines eligibility for benefits, and provides benefit eas. payments. Services also include management and oversight of the city’s life insurance program and In addition, ERS will conduct a series of internal retiree health/dental insurance. audits and random case reviews in the Group Life and Health Insurance Programs to assess the The goal for 2004 is to expand the existing customer processing timeline and compliance with contract services being provided and evaluate those services provisions. These reviews will help in ERS’ quality through a series of satisfaction surveys. Participants assurance effort and result in program modifications in new employee orientation and counseling sessions and process reviews. will be provided with organized informational fold- ers with enhanced brochures and literature. Figure 3 ACTIVITIES shows the growing membership of the pension system ERS serves. In 2004, the department will dedi- • Provide pension information cate $4.8 million towards this objective. • Provision of benefit estimates • Counsel members Program Result Measures: ERS has developed a number of outcome indicators to measure the qual- • Maintenance of membership records and update ity of its services to city employees. To measure the payroll records quality of its counseling services, ERS will continue a • Administer the Group Life Insurance Program series of exit surveys for new employees, pre- and process death claims retirement seminar participants, and retirees. In • Administer COBRA health care and dental care addition, customer service will be evaluated based payments for retirees on timely servicing of walk-ins and scheduled ap- • Administer disability programs

OBJECTIVE 3 Outcome Indicators and Funding Improve ERS’ customer service and operational effectiveness through the continu a- 2002 2003 2004 tion of the acquisition, design, develo p- Experience Budget Projection ment, and implementation of information Funding by Source: systems solutions. Operating Funds $2,135,900 $6,075,146 $5,119,861 Total: $2,135,900 $6,075,146 $5,119,861 OUTCOME HISTORY

It is essential to continually examine the de- • Continue the multi-phased data remediation livery of ERS’ services to assure that they are pro- project vided in a timely, accurate, efficient, and cost- effective manner. The greater incorporation of in- • Continue the near term maintenance of existing formation technologies into the delivery of pension systems including mainframe and server based related services promises to substantively improve applications the administration of ERS. In 2004, ERS has allo- • Maintain the Business Process Models and re- cated $5.1 million towards information systems de- lated systems velopment. • Enhance and maintain the ERS web site and web services ACTIVITIES PROGRAM CHANGES • Continue the implementation of the document management system project begun in 2003 Technology Improvements: At present, much of the • Continue the multi-year implementation of the administration of pension benefits requires human Pension Management Information System intervention in the calculation and updating of bene- (PMIS) begun in 2003 fits. In estimating pension benefits, the necessary data must now be gathered manually from files that

2004 PLAN AND BUDGET SUMMARY 227 EMPLOYES’ RETIREMENT SYSTEM

contain individual employee histories. The actual • Administration of life, health, and COBRA den- calculation of benefits requires an evaluation of the tal programs; and retrieved data to ascertain the values of the key vari- • Query, reporting, and information sharing tech- ables required to compute projected benefits. Up- nologies. dating payroll records to conform with the city cost of living adjustment policy, retroactive pay adjust- The 2004 budget includes $4.5 million in funding for ments for retirees, and other pension enhancements these technology improvements. This funding is in also requires manual intervention and calculation. addition to $5.5 million provided in the 2003 budget.

The objective of the Pension Management Informa- The ERS’ Document Management and Data Reme- tion System (PMIS) project is to automate the core diation projects will continue with funds appropri- business functions of ERS as they relate to member ated in 2002 and 2003. services, both before and during retirement. Specifi- cally, the PMIS will include: The objectives of the Document Management System are to protect the critical business information con- • Historical record keeping of pension data for tained in the ERS member records by conversion and employees of the City of Milwaukee and related indexing into a computer based system, provide agencies for which ERS provides pension man- timely electronic access to records at ERS employee agement services; workstations, and substantially reduce the filing and • Improved accounting for agency and member retrieval problems fostered by a manual paper based contributions; system. • Calculation of pension benefits and estimates that follow the rules established in Chapter 36 of The objectives of the Data Remediation project is to the City Charter; ensure that the electronic recording of information in • Automation of pension payments and deduc- paper format is correct and complete and to verify tions in a manner that ensures timely processing that all required documents for active employee and of accurate payments for retired members; deferred retiree files are present.

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 35.34 40.00 40.00 0.00 FTEs - Other 0.00 0.00 0.00 0.00 Total Positions Authorized 40 42 48 6 DLH - Operations and Maintenance 63,611 72,000 73,340 1,340 DLH - Other Funds 0 0 0 0

EXPENDITURES Salaries and Wages $1,799,296 $2,070,668 $2,143,245 $72,577 Fringe Benefits 674,435 766,147 793,000 26,853 Operating Expenditures 13,448,800 15,419,610 16,085,790 666,180 Equipment 5,750 50,000 50,000 0 Special Funds 3,835,832 5,700,000 4,800,000 -900,000 TOTAL $19,764,113 $24,006,425 $23,872,035 $-134,390

REVENUES Charges for Services $19,669,609 $23,812,611 $23,659,000 $-153,611 Miscellaneous -445 0 156,000 156,000 TOTAL $19,669,164 $23,812,611 $23,815,000 $2,389

CAPITAL PROJECTS - None

228 2004 PLAN AND BUDGET SUMMARY EMPLOYES’ RETIREMENT SYSTEM

ORGANIZATION CHART

Employes’ Retirement System

Annuity and Pension Board

Chief Investment Executive Director Officer Investments Analysts Support Staff

Information Systems ERS Deputy Director Member Services Manager ERS Financial Officer Manager

Research Staff System Support Staff

Pension Counselors Insurance Staff Accounting Payroll

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

6 0.00 $0 Board Members Changes to reflect the Positions Ordinance. 6 0.00 0.00 $0 $0 TOTAL

2004 PLAN AND BUDGET SUMMARY 229 DEFERRED COMPENSATION PLAN

EXECUTIVE SUMMARY

MISSION: To provide a tax deferred retirement savings option for city employees that is cost effective and responsive to the needs of its participants and which is in accordance with Section 457 of the Internal Revenue Code.

STRATEGIC Continue a responsive organizational structure and enhance labor/management partnerships. ISSUES: Offer a wide variety of investment options to meet the needs of participants.

INITIATIVES Continue to provide administration for the Deferred Compensation Plan in the most efficient FOR 2004: manner.

BACKGROUND

Section 5-50 of the Milwaukee City Charter allows for establishment of a Deferred Com- Figure 1 pensation Plan. The plan is a non-qualified, tax deferred retirement plan governed under Deferred Compensation Plan Assets Section 457 of the Internal Revenue Code. Such a plan allows city employees to defer, or $400 set aside, a portion of their income before $350 federal and state taxes are withheld. The income is not taxed until it is withdrawn $300 from the plan, usually at retirement when an $250 individual’s marginal tax rate may be lower. $200 (In Millions)

The Deferred Compensation Plan has been in $150 existence since 1974 and was opened to all employees in 1977. It is funded entirely by $100 payroll and rollover contributions of city $50 employees and associated earnings. The plan $0 is administered by a nine member Deferred 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Compensation Board, which has hired contractors to perform daily activities in enrollment, record keeping, marketing and invest- The Deferred Compensation Plan was previously ment selection, and monitoring. In 1987, the plan administered by the Office of the Comptroller but a was unbundled to offer participants five investment separate budgetary control unit was established in options in which to invest their funds. As shown in 1996. The plan is self-sustaining and does not im- Figure 1, the plan has grown to its present size of pact the City of Milwaukee’s property tax levy; par- approximately 7,400 active and retired participants, ticipants pay for all plan expenses. In 2002, funding which is a 64.9% rate of active participation with for deferred compensation expenses was moved assets of $335 million (as of March 31, 2003). from the General City Purpose Section to the Provi- sion for Employee’s Retirement Fund to more ap- Between 1988 and 1999, plan assets increased dra- propriately reflect this account as a retirement- matically peaking at $394.5 million. Since 1999, plan related account. assets have declined due to both a slowing in the economy and in the stock market.

230 2004 PLAN AND BUDGET SUMMARY DEFERRED COMPENSATION PLAN

OBJECTIVE 1 Outcome Indicators and Funding

Maintain a qualified, cost effective, and 2002 2003 2004 responsive Deferred Compensation Plan Experience Budget Projection Increase active employee 64.9% 68.5% 70.5% in accordance with Section 457 of the participation by 3%. Internal Revenue Code and employees’ Increase participant cash flow by $4,396 $5,057 $5,150 needs, as measured by increased em- 4%. ployee participation and cash flow. Funding by Source: Operating Funds $841,712 $1,109,917 $1,168,982 OUTCOME HISTORY (Employee Contributions) Total: $841,712 $1,109,917 $1,168,982 The present menu of investments consists of “new plan” and “old plan” investments. Account, Actively Managed Equity Account, Pas- The “old plan” investments are two insurance com- sively Managed International Equity Account, and pany contracts, which provide a fixed return and a Schwab Personal Choice Retirement Account. Sup- variable return for as long as funds are accumulated porting the investment options are either a group of during an employee’s working years. “Old plan” investment contracts selected by the plan’s discre- investments of this sort were used exclusively dur- tionary investment manager for the Stable Value ing the first decade of the plan’s existence, largely Account or a group of mutual funds selected by the because no real alternative existed for 457 plans. In board for the other five accounts. The last option is 1987, the board closed “old plan” investments to the Schwab Personal Choice Retirement Account new monies. Arrangements were made with the where participants can buy and sell stocks, bonds, insurance carriers to enable participants to move out and mutual funds of their choice. of these investments if they so desired. As a result, today only about $2.1 million of the plan’s assets By offering a variety of investment options, the remain in “old plan” investments. board provides plan participants with an opportunity to diversify their investments. The board has Participants can choose their payroll contribution to improved investment returns to the participants by be deposited into different investment options. actively seeking out manager fee reductions, institu- Seven plan investment options are offered to em- tional class fund shares, 12 B-1 fee credits, and low ployees. Since this is a participant-directed plan, the operating cost funds. decision of which investment option(s) to use is made entirely by the participant. The board hires a The 2004 budget provides approximately $1.2 mil- third party administrator to provide education to lion in funding towards this objective. participants about the varying investment characteristics of each of the seven options. The board has assumed responsibility for specifying the options ACTIVITIES from which participants make their choices. The board focuses on broad investment categories, or • Enrollment, agreement processing, payroll strategies, in making options available to partici- changes, future allocation changes, quarterly re- pants. The seven investment options are: Stable porting, participant advising, and educational Value Account, Income Account, Socially Conscious seminars Balanced Account, Passively Managed U.S. Equity • Invest in seven investment options • Receive and deposit participant contributions

2004 PLAN AND BUDGET SUMMARY 231 DEFERRED COMPENSATION PLAN

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 1.93 2.00 2.00 0.00 FTEs - Other 0.00 0.00 0.00 0.00 Total Positions Authorized 2 2 2 0 DLH - Operations and Maintenance 3,482 3,600 3,600 0 DLH - Other Funds 0 0 0 0

EXPENDITURES Salaries and Wages $110,681 $108,830 $116,459 $7,629 Fringe Benefits 39,436 40,267 43,090 2,823 Operating Expenditures 691,595 885,820 930,433 44,613 Equipment 0 0 4,000 4,000 Special Funds 0 75,000 75,000 0 TOTAL $841,712 $1,109,917 $1,168,982 $59,065

REVENUES Charges for Services $813,547 $1,109,917 $1,168,982 $59,065 TOTAL $813,547 $1,109,917 $1,168,982 $59,065

CAPITAL PROJECTS - None

ORGANIZATION CHART

Deferred Compensation Board

Deferred Compensation Staff

232 2004 PLAN AND BUDGET SUMMARY C. CAPITAL IMPROVEMENTS FUNDS

EXECUTIVE SUMMARY

MISSION: To maintain and enhance the city’s infrastructure in a cost efficient and effective way so as to ensure that the city remains economically competitive.

STRATEGIC Prepare a six year capital improvements plan to identify long range capital needs and to estab- ISSUES: lish spending, debt, and tax rate goals.

Develop investment strategies to ensure favorable rates of return on city capital investments.

INITIATIVES Continue to fund the City Hall Restoration Project to repair and restore the exterior walls, roof, FOR 2004: towers, and supporting structures.

Invest in the Police Digital Trunked Radio Communication System to comply with FCC mandate and provide flexible communication between various agencies in response to emergencies.

Continue to convert funding for recurring infrastructure preservation projects from borrowing to cash financing as required by Common Council resolution.

Continue to evaluate the condition of the city’s infrastructure by utilizing databased condition assessment project planning.

Continue the Major Capital Equipment Program within the Department of Public Works (DPW) and Fire Department.

Continue to promote economic development and family supporting job growth through Tax Increment Financing Districts and similar development vehicles.

Replace the Fire Equipment Repair Shop with a new facility that will better meet departments needs.

BACKGROUND

The 2004 capital improvements budget represents or facility to full functionality. They may also in- the initial year of a six year capital improvements clude projects to construct a new or more expansive plan. The budget reflects the city’s capital needs and facility to meet increased demands or to enhance identifies project costs and funding sources. Capital economic development through job creation, busi- improvements may include projects to reconstruct, ness formation, and housing production. rehabilitate, or otherwise restore an existing system

HIGHLIGHTS

The 2004 general city purposes capital improve- levy cash resources as well as tax levy-supported ments budget totals $109.6 million, an increase of general obligation debt, totals $73 million a decrease $2.5 million or 2.4%, from the 2003 budget of $107.1 of $2.6 million or 3.4% from the 2003 budget of $75.6 million. This increase is in line with the rate of infla- million. Tax levy cash resources will decrease $4.1 tion for this time period. The tax levy-supported million from $15.6 million in 2003 to $11.5 million in portion of the capital budget, which includes tax 2004. The decrease is largely due to utilization of

2004 PLAN AND BUDGET SUMMARY 233 C. CAPITAL IMPROVEMENTS FUNDS

carryover balances for a portion of infrastruc- Figure 1 ture program funding and a substantial reduction in remodeling and renovation projects in 2004. Capital Improvement Budgets (1991-2004)

The city’s new borrowing authorizations for $120 2004 total $61.5 million, approximately a $1.5 million or 3% increase over 2003. Borrowing $100 authorizations were only slightly higher than 2003 levels due to close scrutiny of larger $80 projects. $60 (In Millions) Figure 1 shows capital improvement budgets Annual Budget from 1991 to 2004. As shown, the capital $40 improvement budget steadily increased between 1991 to 1999. In 2000, the capital im- $20 provement budget was significantly lower $0 than those for the period between 1991 to 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 1999 due to increased grant funding. Since 2001, the capital improvements budget has been stabilized between $102.8 million and Figure 2 $109.6 million, a level that is sustainable and provides for a strong infrastructure, efficient service delivery to residents, well maintained 2004 Capital Improvements Budget by Function city owned buildings, and is a catalyst to General City Purpose Funding economic development and attracting additional family supporting jobs. General Government 27.8% Figure 1 has been adjusted to remove sewer Surface relief and relay projects to provide accurate Transportation year-to-year comparisons of capital funding Culture and 25.3% Recreation levels. In 2000, all sewer relief and relay 2.4% projects were transferred to the Sewer Main- tenance Fund and financed through a portion of the Sewer Maintenance Fee, thereby re- Environment 6.0% Economic ducing the amount of capital supported by Development the city. 24.8% Health and Safety 13.7% Functional Categories: Projects included in the 2004 city funded capital improvements The 2004 budget provides $6.1 million (compared to budget are categorized in six functional areas, in- $5 million in 2003) in major equipment for DPW cluding surface transportation, environment, health Operations Division including sweepers, tractors, and public safety, economic development, culture aerial trucks, dump trucks, and garbage packers. and recreation, and general government. Figure 2 This purchase will replace aged equipment that is illustrates the portion of the capital budget allocated beyond economical repair. to each functional area (Water, Parking, Sewer Relief and Relay, and Grant and Aids are excluded) Surface transportation projects constitute the second largest functional area or 25.3% of the capital budget. The general government project category is the larg- Approximately $25.1 million is provided for this est capital functional area. Approximately $27.6 purpose. Major transportation projects include: million or 27.8% of capital budget resources are provided for this purpose. In 2003, $29.5 million was provided for this purpose. The primary reasons for • Streets and alleys ($13,064,339) the decrease from 2003 are the continuing City Hall • Street lights and controls ($4,563,602) Restoration Project ($11.2 million down $1.2 million) • Major bridges ($5,650,809) and decreased remodeling and renovation projects.

234 2004 PLAN AND BUDGET SUMMARY C. CAPITAL IMPROVEMENTS FUNDS

Economic development projects constitute 24.8% of Infrastructure Versus Total: Over the past decade, tax levy-supported capital funding or $24.6 million. the city has made a concerted effort to adequately Tax Incremental Districts (TIDs), amount to $20.6 fund the maintenance, replacement, and when ap- million or 83.7% of the funding for economic devel- propriate, the expansion of the city’s infrastructure opment projects. Continuing projects to be funded system. Analysis conducted by the Budget and Pol- include improvement of the former Park East Free- icy Division concluded that during the eleven years way Corridor, the Shops at Grand Avenue New from 1985 to 1996, capital investments by the city not Arcade, the residential Beerline B development only replaced infrastructure value lost due to normal along the Milwaukee River north of downtown, and wear and tear, but also increased the inflation ad- the Midtown Center (the former Capitol Court Mall). justed value of Milwaukee’s share of regional public New projects include site preparation of the recently infrastructure by 4.6%. acquired approximately 140 acre CMC parcel in the Menomonee Valley. Development district projects Figure 3 shows the city’s annual investment in infra- are the second largest type of projects within the structure systems, including Water and Sewer Main- economic development function amounting to $2.4 tenance Enterprise Funds. These are real dollar million or 9.6%. Development districts fund smaller amounts, meaning they have been adjusted for infla- projects on an expedited basis to spur economic tion. The core investment of $50,000,000 is constant development. throughout the nine years. This demonstrates the city’s ongoing commitment to sufficiently fund its Health and safety related projects represent the infrastructure needs. fourth largest portion of the 2004 capital budget. Approximately 13.7%, or $13.6 million of the city’s In nominal terms, the portion of the city’s 2004 capi- capital budget is provided for this purpose. Funding tal budget dedicated to infrastructure (which in- allocated to this functional area will provide for cludes sewer expansion, streets, alleys, sidewalks, renovation of the Keenan Health Center to accom- traffic controls, etc.) totals $30.6 million. This is a modate the Tuberculosis Clinic as well as making $4.9 million decrease from 2003, reflecting an evalua- essential facilities and systems renovations. The tion of the condition of infrastructure components, Police Department will receive funding to procure close review of prior year infrastructure expendi- and implement a new trunked digital radio system, tures, and higher grant and aid to be received from make needed improvements to the Evidence Storage the state and federal governments for projects such Warehouse, and replace the Training Academy Fir- as the reconstruction and extension of West Canal ing Range. The Fire Department will continue its Street from North Sixth Street to Miller Park Way. equipment replacement plan, acquiring three pumper trucks, four aerial ladder trucks, one compressed air support truck, and two paramedic ambulances. Funding is also provided for design, land acquisition, and site preparation to replace Figure 3 the Fire Equipment Repair Garage. Capital Budget Investment Environmental program funding comprises in Infrastructure Systems 6.0% or nearly $6 million of the city’s capital (In Real Dollars) budget. Among environmental programs are $70,000,000 expansion of sewer capacity ($4 million of city funding) and environmental remediation $60,000,000 ($685,000). $50,000,000

$40,000,000 Culture and recreation related projects represent approximately 2.4% of the capital $30,000,000 budget, or $2.4 million. Central and neigh- $20,000,000 borhood libraries capital projects funding totals $2 million. Improvement of the city’s $10,000,000 totlots and playgrounds ($400,000) include $0 children’s play area reconstruction to current 1996 1997 1998 1999 2000 2001 2002 2003 2004 safety and accessibility standards, tennis court restoration, and ball diamond restoration.

2004 PLAN AND BUDGET SUMMARY 235 C. CAPITAL IMPROVEMENTS FUNDS

Figure 4 Preservation Versus Expansion: Capital projects are further classified into two categories: preservation and expansion. Figure 4 2004 Capital Improvements illustrates the proportion of capital projects Percent Preservation and Expansion that either preserve or expand the city’s infrastructure. As shown, a major portion of the total capital budget, approximately $71 million (excluding sewer relief and relay and grant and aid funding), or 64.8% is allocated to preserving existing equipment, facilities, Expansion and infrastructure, including the city’s sewer Preservation 35.2% and transportation systems. This level of 64.8% funding for preservation projects reflects the advancing age of many of the city’s facilities and infrastructure systems and the level of investment needed to maintain the condition of these systems.

The 2004 capital budget provides $38.6 mil- Figure 5 lion, or 35.2% for expansion projects. These projects include economic development related projects and new street and expansion of capacity sewer construction projects, most 2004 Capital Improvements Funding Sources notably the West Canal Street reconstruction and extension and development related infrastructure. Tax Levy Tax Levy-Supported 10.5% Debt 56.1% Funding Sources: The 2004 capital budget is Special Assessment financed through several funding sources 4.7% including the property tax levy, tax levy- supported debt, tax incremental districts, Cash Revenue 11.4% special assessments, cash revenues, and grants and aids (grant and aid not directly spent by the city is excluded). Figure 5 TID shows funding sources for the 2004 city 17.3% funded capital budget.

The largest source of funding for capital projects is tax levy-supported debt financing, approxi- between $21 million and $61.5 million between 1991 mately $61.5 million, or 56.1% of total funding. This and 2004 with increases primarily due to the effects is an increase of approximately $1.5 million from the of large one time capital projects. 2003 budget. All amounts in Figure 6 have been adjusted to re- The second largest funding source is tax levy (cash) move sewer relief and relay projects to provide ac- financing which totals $11.5 million, or 10.5% of total curate year-to-year comparisons of capital funding city funding in 2004. This is a $4.1 million decrease levels. As stated previously, in 2000, all sewer relief from the 2003 levy of $15.6 million. and relay projects were transferred to the Sewer Figure 6 shows cash and debt financing trends for Maintenance Fund, thereby reducing the amount of capital improvements from 1991 to 2004. As shown, capital supported by the city tax levy. The Sewer cash financing of capital improvements increased to Maintenance Fee is paid by both property tax ex- as much as $25 million between 1991 and 1999. This empt entities and property taxpayers. This reduces increase is due largely to the infrastructure cash the burden on property taxpayers and properly conversion policy. The lower levels of cash levy charges tax exempt entities based on their usage. financing since 1999 are due to infrastructure program adjustments and expanded use of special as- Other non-tax levy related funding sources for the sessment. Tax levy-supported debt has fluctuated 2004 capital budget include cash revenues totaling

236 2004 PLAN AND BUDGET SUMMARY C. CAPITAL IMPROVEMENTS FUNDS

$12.5 million, special assessments of $5.2 Figure 6 million, and tax incremental financing totaling $19 million (cash revenues include $1.6 Tax Levy and Debt Financing for million of TID related revenues). In addition, Capital Improvements 1991-2004 state and federal grant and aid funding provides $49.4 million for certain city infrastruc- $70 ture projects and Port development projects. $60 These funds are reflected in the budget as footnotes since the city does not control how $50 they are expended. $40

$30 Cash Conversion Policy: In 1986, the Com- mon Council adopted a resolution that Financing (In Millions) $20 gradually converts funding for recurring $10 infrastructure projects from borrowing to $0 cash financing through the year 2005. This 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 strategy was employed to decrease overall Cash Levy Tax Levy-Supported Debt debt and ultimately reduce costs and resulting tax levies for what are, in effect, annually recurring replacement projects. Figure 7 Figure 7 graphically illustrates the effects of the cash conversion policy since 1986. Infrastructure Preservation Percent Cash-Financed The 2004 capital budget does not meet its Infrastructure Cash Conversion (ICC) Policy 120% goal of 95.52% due to a Common Council amendment to the Mayor’s proposed budget. 100% The amendment increased funding for Rec- 80% reational Facilities from $219,000 to $400,000 and changed program financing from cash to 60% borrowing. As a result, infrastructure project funding totals $10.1 million in cost to the city 40% of which $844,000 will be borrowed and $9.2 Percent of Preservation Total million or 91.63% is cash financed. The cash 20% financing is $392,000 short of the 95.52% goal. 0% 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Note: For purposes of the 2003 and earlier Actual Required budgets, the Public Debt Amortization Fund (PDAF) withdrawal was reflected in the capital improvements budget by shifting cash funded pal and interest on city debt due in 2003, which will improvements to debt funded improvements. Fund result in a reduction in the debt levy portion of the assets were used to purchase the additional debt. 2004 city debt budget. This change will increase the The additional debt was then immediately canceled, tax levy funded portion of the 2004 Capital Im- thus avoiding future debt service costs. For 2004 provements budget. budget purposes, the Public Debt Commission approved a $4 million withdrawal to be applied to Capital Project Detail: Specific capital project and reduce the city debt tax levy rather than the capital program appropriations are listed in the departmen- improvements tax levy. At the end of 2003, fund tal project table at the end of this section. assets will be used to prepay a portion of the princi-

2004 HIGHLIGHTS AND CHANGES

Major Capital Equipment: Instituted in 2002, Major and Department of Public Works’ budgets will con- Capital Equipment Accounts in the Fire Department tinue to fund the purchase of durable equipment, with an original unit cost of $50,000 or more through

2004 PLAN AND BUDGET SUMMARY 237 C. CAPITAL IMPROVEMENTS FUNDS the capital budget. In 2004, the Fire Department will Communications System. This will serve as a base use $3.8 million to purchase three pumper engines, for full conversion to be implemented in 2004 and four aerial ladders, two paramedic ambulances, and 2005. It is imperative that this conversion takes one compressed air support truck. place, as the Federal Communications Commission is reallocating frequency ranges in 2005. A FCC In 2004, DPW Operations Division will procure re- compliant digital system will allow several users to placements for a range of equipment that is beyond communicate over the same frequency simultane- economical repair, including ten garbage and three ously. It will also ensure that various local agencies recycling packers, ten general purpose dump trucks are able to communicate on mutually accessible fre- with underbody plows, four multi-purpose tractors, quencies when responding to emergencies. The three road sweepers, and four tri-axle dump trucks. overall cost of this project will be $18.8 million in- Total funding of $6.1 million is provided for DPW cluding an expected $6.8 million in federal and state capital equipment. grants.

City Hall Restoration: Milwaukee’s City Hall is an Menomonee Valley DPW Facilities Relocation: architecturally significant landmark building listed The 2004 budget includes $2.5 million to relocate in the National Register of Historic Places. City en- Department of Public Works’ facilities at North Sixth gineering staff’s observations determined that City and West Canal Streets. The relocation will open Hall’s tower, roof, and walls needed work to restore this valuable corner for redevelopment, capitalizing the building’s watertight integrity. Subsequent de- on the greatly improved accessibility provided by tailed studies by engineering and architectural ex- the reconstructed Sixth Street Bridge. It will also perts have found significant structural problems serve as a gateway to the newly reconstructed and with the towers, exterior walls, interior walls, and extended West Canal Street. These projects are ex- supporting structure. These studies included an pected to be catalysts for the long awaited revitaliza- initial close visual examination and follow on ex- tion of the Menomonee Valley into a vibrant light ploratory disassembly and evaluation of specific industrial, commercial, and recreational area. areas of concern. A peer review by other experts in building restoration then critiqued these studies and Tax Increment Financing Districts: The 2004 capital found them sound. City staff is scrutinizing these budget includes $20.6 million funding ($19 million plans to determine if cost savings are available. The self-supported borrowing and $1.6 cash revenues) to 2004 capital budget provides $11.2 million to con- promote economic development and job growth tinue this multi-year project, in addition to the $12.4 through the tax increment financing district vehicle. million for the initial stages of the project in 2003. Large, ongoing projects include the redevelopment The total for this project is expected to be $31.7 mil- of the former Park East Freeway Corridor from I-43 lion. to Broadway; residential, retail, and riverwalk development along the Milwaukee River from the Port West Canal Street Reconstruction and Extension: to North Avenue; the Midtown Center development The improvement and extension of West Canal transforming the former Capitol Court Mall; and the Street from North Sixth Street to the Miller Park renovation of the Shops at Grand Avenue arcade. Baseball Stadium began in 2003. Approximately $6.8 New projects include site preparation of the recently million was allocated in 2003 as the city’s match to acquired approximately 140 acre former CMC rai- grant funding is received from the state. In 2004, an lyard parcel in the Menomonee Valley, development additional $14.2 million city share will be provided of the former Solvay Coke site in the Historic Third through the Majors Streets, Bridges, and Sewer Ex- Ward, and redevelopment of the former Tower pansion Programs. The total city cost of this multi- Automotive facilities on the northside of Milwaukee. year project will be approximately $19 million. This project is considered vital to the redevelopment of Keenan Renovation for Health Department’s Tu- the Menomonee Valley. Combined with the recently berculosis Clinic: In 2003, the Health Department completed replacement of the Sixth Street Viaduct, it moved its Tuberculosis Clinic to the Keenan Health will also serve as an alternate travel route during the Center from the Southside Health Center in an effort planned upcoming reconstruction of the Marquette to make services more accessible to clients. The Interchange. basement of the Keenan facility will be extensively renovated to accommodate this needed clinical and Trunked Radio Communications: In 2004, $5 mil- office space. In 2004, $300,000 will be provided for lion is provided in addition to $2 million provided in this project. This project is needed because existing 2003 to lay the infrastructure for a new Police Radio clinical space was determined to be insufficient after

238 2004 PLAN AND BUDGET SUMMARY C. CAPITAL IMPROVEMENTS FUNDS the Sexually Transmitted Disease Clinic moved in to size and technology) and the existing facility is in- Keenan Health Center. adequate to meet the maintenance needs of the de- Fire Repair Shop Design and Construction: In partment. A study funded in the 2002 capital budget 2004, $1.8 million is provided for this project. The determined that the fire equipment and general city total cost is expected to be $10.7 million. The Fire equipment repair and maintenance functions were Department’s Repair Shop was constructed in 1928, too diverse to consolidate into one facility. The new and reflects the needs of the department during the facility will greatly improve the working environ- 1920’s and 1930’s. Since then, the types of vehicles ment and productivity of the fire equipment repair being repaired have changed dramatically (in both force.

SUMMARY OF DEPARTMENTAL APPROPRIATIONS OVERVIEW OF 2004 CAPITAL BUDGET GENERAL CITY PURPOSES

CHANGE 2003 2004 2004 ADOPTED ADOPTED ADOPTED VERSUS BUDGET BUDGET 2003 ADOPTED

Special Projects $11,325,000 $10,325,000 $-1,000,000 Administration 811,500 630,000 -181,500 City Attorney 0 0 0 City Development 16,850,000 23,950,000 7,100,000 Fire Department 5,105,000 5,840,000 735,000 Health Department 1,129,700 1,240,000 110,300 Library 990,000 2,000,000 1,010,000 Municipal Court 0 250,000 250,000 Neighborhood Services 260,000 0 -260,000 Police Department 4,571,793 6,510,000 1,938,207 Port of Milwaukee 400,000 650,000 250,000 Public Works 65,685,390 58,254,250 -7,431,140 SUBTOTAL CITY FUNDED $107,128,383 $109,649,250 $2,520,867

GRANT AND AID FUNDING Port of Milwaukee $1,600,000 $1,150,000 $-450,000 Police Department 3,000,000 0 -3,000,000 Public Works 36,094,950 48,202,981 12,108,031 SUBTOTAL GRANT AND AID $40,694,950 $49,352,981 $8,658,031

ENTERPRISE FUNDS Parking $1,661,000 $1,305,900 $-355,100 Water 14,900,000 22,620,000 7,720,000 Sewer Maintenance 19,700,000 21,500,000 1,800,000 SUBTOTAL ENTERPRISE $36,261,000 $45,425,900 $9,164,900

TOTAL CAPITAL PLAN $184,084,333 $204,428,131 $20,343,798

2004 PLAN AND BUDGET SUMMARY 239 C. CAPITAL IMPROVEMENTS FUNDS

2004 CAPITAL IMPROVEMENTS FINANCED BY CATEGORY CITY GRANT PROJECT/ TAX GENERAL SPECIAL CASH BUDGET AND AID PROGRAM LEVY OBLIGATION TID ASSESSMENTS REVENUES TOTAL FINANCING TOTAL SPECIAL CAPITAL PROJECTS Equipment Replacement Program Carryover ($0) ($3,300,000) ($0) ($0) ($0) ($3,300,000) ($0) ($3,300,000) Technology Initiative Carryover (0) (1,000,000) (0) (0) (0) (1,000,000) (0) (1,000,000) Grant and Aid Budget 0 300,000 0 0 10,000,000 10,300,000 0 10,300,000 Carryover (0) (4,580,487) (0) (0) (0) (4,580,487) (0) (4,580,487) Municipal Art Fund Budget 25,000 0 0 0 0 25,000 0 25,000 TOTAL SPECIAL PROJECTS Budget $25,000 $300,000 $0 $0 $10,000,000 $10,325,000 $0 $10,325,000 Carryover ($0) ($8,880,487) ($0) ($0) ($0) ($8,880,487) ($0) ($8,880,487) DEPARTMENT OF ADMINISTRATION Remodel ITMD 809 Building Fourth Floor Carryover (0) (561,500) (0) (0) (0) (561,500) (0) (561,500) Record Retention Movable Shelving Carryover (0) (200,000) (0) (0) (0) (200,000) (0) (200,000) Financial Mgmt Information System Upgrade Budget $0 $630,000 $0 $0 $0 $630,000 $0 $630,000 TOTAL DEPARTMENT OF ADMINISTRATION Budget $0 $630,000 $0 $0 $0 $630,000 $0 $630,000 Carryover ($0) ($761,500) ($0) ($0) ($0) ($761,500) ($0) ($761,500) CITY ATTORNEY'S OFFICE Five Additional Attorney Offices Carryover ($0) ($252,000) ($0) ($0) ($0) ($252,000) ($0) ($252,000) TOTAL CITY ATTORNEY'S OFFICE Carryover ($0) ($252,000) ($0) ($0) ($0) ($252,000) ($0) ($252,000) DEPARTMENT OF CITY DEVELOPMENT Advance Planning Budget $150,000 $0 $0 $0 $0 $150,000 $0 $150,000 Neighborhood Commercial District Street Improvement Fund Budget 0 500,000 0 0 0 500,000 0 500,000 Carryover (0) (885,000) (0) (0) (0) (885,000) (0) (885,000) Tax Increment Financed Urban Renewal Projects (Including Grant Funded Projects) Budget 0 0 19,000,000 0 1,600,000 20,600,000 0 20,600,000 Carryover (0) (0) (27,916,180) (0) (0) (27,916,180) (0) (27,916,180) Development Fund Budget 0 2,200,000 0 0 0 2,200,000 0 2,200,000 Carryover (0) (5,206,988) (0) (0) (0) (5,206,988) (0) (5,206,988) Business Improvement Districts Budget 0 500,000 0 0 0 500,000 0 500,000 Carryover (0) (500,000) (0) (0) (0) (500,000) (0) (500,000) TOTAL DEPARTMENT OF CITY DEVELOPMENT Budget $150,000 $3,200,000 $19,000,000 $0 $1,600,000 $23,950,000 $0 $23,950,000 Carryover ($0) ($6,591,988) ($27,916,180) ($0) ($0) ($34,508,168) ($0) ($34,508,168) FIRE DEPARTMENT Ventilation System and Window Replacement Budget $200,000 $0 $0 $0 $0 $200,000 $0 $200,000 Computer Aided Dispatch Carryover (0) (2,059,900) (0) (0) (0) (2,059,900) (0) (2,059,900) Engine Company #3 Alterations Carryover (0) (470,000) (0) (0) (0) (470,000) (0) (470,000) Repair Fire Training Tower and Splashboard Budget 75,000 0 0 0 0 75,000 0 75,000 Fire Repair Shop Design and Construction Budget 0 1,800,000 0 0 0 1,800,000 0 1,800,000 Major Capital Equipment Budget 370,000 3,395,000 0 0 0 3,765,000 0 3,765,000 Carryover (0) (710,000) (0) (0) (0) (710,000) (0) (710,000) TOTAL FIRE DEPARTMENT Budget $645,000 $5,195,000 $0 $0 $0 $5,840,000 $0 $5,840,000 Carryover ($0) ($3,239,900) ($0) ($0) ($0) ($3,239,900) ($0) ($3,239,900)

240 2004 PLAN AND BUDGET SUMMARY C. CAPITAL IMPROVEMENTS FUNDS

CITY GRANT PROJECT/ TAX GENERAL SPECIAL CASH BUDGET AND AID PROGRAM LEVY OBLIGATION TID ASSESSMENTS REVENUES TOTAL FINANCING TOTAL HEALTH DEPARTMENT Keenan Renovation for Tuberculosis Clinic Budget $0 $300,000 $0 $0 $0 $300,000 $0 $300,000 Mechanical Systems Maintenance Program Budget 0 375,000 0 0 0 375,000 0 375,000 Carryover (0) (267,000) (0) (0) (0) (267,000) (0) (267,000) Exterior Building Maintenance Program Budget 0 315,000 0 0 0 315,000 0 315,000 Carryover (0) (300,700) (0) (0) (0) (300,700) (0) (300,700) Interior Building Maintenance Program Budget 0 250,000 0 0 0 250,000 0 250,000 Carryover (0) (262,000) (0) (0) (0) (262,000) (0) (262,000) Client Tracking System Replacement Carryover (0) (300,000) (0) (0) (0) (300,000) (0) (300,000) TOTAL HEALTH DEPARTMENT Budget $0 $1,240,000 $0 $0 $0 $1,240,000 $0 $1,240,000 Carryover ($0) ($1,129,700) ($0) ($0) ($0) ($1,129,700) ($0) ($1,129,700) LIBRARY CENTRAL LIBRARY Central Library Improvements Program Budget $0 $825,000 $0 $0 $0 $825,000 $0 $825,000 Carryover (0) (260,000) (0) (0) (0) (260,000) (0) (260,000) NEIGHBORHOOD LIBRARIES Neighborhood Library Improvement Fund Budget 0 1,175,000 0 0 0 1,175,000 0 1,175,000 Carryover (0) (450,000) (0) (0) (0) (450,000) (0) (450,000) TOTAL LIBRARY Budget $0 $2,000,000 $0 $0 $0 $2,000,000 $0 $2,000,000 Carryover ($0) ($710,000) ($0) ($0) ($0) ($710,000) ($0) ($710,000) MUNICIPAL COURT Court Case Management System Budget $0 $250,000 $0 $0 $0 $250,000 $0 $250,000 TOTAL MUNICIPAL COURT Budget $0 $250,000 $0 $0 $0 $250,000 $0 $250,000 NEIGHBORHOOD SERVICES Remodel Municipal Building and Anderson Building Carryover ($0) ($260,000) ($0) ($0) ($0) ($260,000) ($0) ($260,000) TOTAL NEIGHBORHOOD SERVICES Carryover ($0) ($260,000) ($0) ($0) ($0) ($260,000) ($0) ($260,000) POLICE DEPARTMENT Remodel Administration Building Offices Carryover ($0) ($3,048,137) ($0) ($0) ($0) ($3,048,137) ($0) ($3,048,137) Trunked Radio Communications Citywide Budget 0 5,000,000 0 0 0 5,000,000 0 5,000,000 Carryover (0) (900,000) (0) (0) (0) (900,000) (0) (900,000) Interim Radio Replacements Trunked Radio Carryover (0) (244,000) (0) (0) (0) (244,000) (0) (244,000) District Station #2 Renovation Carryover (0) (2,000,000) (0) (0) (0) (2,000,000) (0) (2,000,000) District Station #4 Repairs Carryover (0) (250,000) (0) (0) (0) (250,000) (0) (250,000) District Station #5 Generator Budget 35,000 0 0 0 0 35,000 0 35,000 District Station #6 Repairs Budget 100,000 0 0 0 0 100,000 0 100,000 Evidence Storage Warehouse Budget 0 425,000 0 0 0 425,000 0 425,000 Training Academy Firing Range Budget 0 950,000 0 0 0 950,000 0 950,000 TOTAL POLICE DEPARTMENT Budget $135,000 $6,375,000 $0 $0 $0 $6,510,000 $0 $6,510,000 Carryover ($0) ($6,442,137) ($0) ($0) ($0) ($6,442,137) ($0) ($6,442,137) PORT OF MILWAUKEE Dockwall Rehabilitation Budget $100,000 $0 $0 $0 $0 $100,000 $0 $100,000 Pier, Berth, and Channel Improvements Budget 200,000 0 0 0 0 200,000 800,000 1,000,000 Carryover (0) (1,175,000) (0) (0) (0) (1,175,000) (0) (1,175,000)

2004 PLAN AND BUDGET SUMMARY 241 C. CAPITAL IMPROVEMENTS FUNDS

CITY GRANT PROJECT/ TAX GENERAL SPECIAL CASH BUDGET AND AID PROGRAM LEVY OBLIGATION TID ASSESSMENTS REVENUES TOTAL FINANCING TOTAL Rail Track and Service Upgrades Budget 100,000 0 0 0 0 100,000 100,000 200,000 Port Security Budget 0 250,000 0 0 0 250,000 250,000 500,000 TOTAL PORT Budget $400,000 $250,000 $0 $0 $0 $650,000 $1,150,000 $1,800,000 Carryover ($0) ($1,175,000) ($0) ($0) ($0) ($1,175,000) ($0) ($1,175,000) DPW ADMINISTRATION City Telephone Switch Replacement Carryover ($0) ($1,498,512) ($0) ($0) ($0) ($1,498,512) ($0) ($1,498,512) Public Safety Communications Budget 626,000 0 0 0 0 626,000 0 626,000 TOTAL DPW ADMINISTRATION Budget $626,000 $0 $0 $0 $0 $626,000 $0 $626,000 Carryover ($0) ($1,498,512) ($0) ($0) ($0) ($1,498,512) ($0) ($1,498,512) DPW OPERATIONS DIVISION BUILDINGS AND FLEET SECTION City Hall Complex Remodeling Budget $0 $440,000 $0 $0 $0 $440,000 $0 $440,000 Carryover ($0) ($1,426,400) ($0) ($0) ($0) ($1,426,400) ($0) ($1,426,400) Recreational Facilities Citywide Budget 0 400,000 0 0 0 400,000 0 400,000 Carryover (0) (155,000) (0) (0) (0) (155,000) (0) (155,000) ADA Compliance Program Budget 0 400,000 0 0 0 400,000 0 400,000 Carryover (0) (913,200) (0) (0) (0) (913,200) (0) (913,200) Facility Systems Program Budget 0 2,500,000 0 0 0 2,500,000 0 2,500,000 Carryover (0) (5,584,750) (0) (0) (0) (5,584,750) (0) (5,584,750) Facilities Exterior Upgrades Program Budget 0 431,000 0 0 0 431,000 0 431,000 Carryover (0) (2,042,500) (0) (0) (0) (2,042,500) (0) (2,042,500) Environmental Remediation Program Budget 0 685,000 0 0 0 685,000 0 685,000 Carryover (0) (775,400) (0) (0) (0) (775,400) (0) (775,400) City Hall Restoration Program Budget 0 11,200,000 0 0 0 11,200,000 0 11,200,000 Carryover (0) (15,183,037) (0) (0) (0) (15,183,037) (0) (15,183,037) Muni Garages/Outlying Facilities Remodeling Budget 0 1,500,000 0 0 0 1,500,000 0 1,500,000 Carryover (0) (871,220) (0) (0) (0) (871,220) (0) (871,220) Major Capital Equipment Budget 0 6,146,000 0 0 0 6,146,000 0 6,146,000 Carryover (0) (1,101,000) (0) (0) (0) (1,101,000) (0) (1,101,000) Menomonee Valley Facilities Relocation Budget 0 2,500,000 0 0 0 2,500,000 0 2,500,000 TOTAL BUILDINGS AND FLEET SECTION Budget $0 $26,202,000 $0 $0 $0 $26,202,000 $0 $26,202,000 Carryover ($0) ($28,052,507) ($0) ($0) ($0) ($28,052,507) ($0) ($28,052,507) FORESTRY SECTION Concealed Irrigation and General Landscaping Budget $196,500 $0 $0 $0 $0 $196,500 $0 $196,500 Carryover (0) (381,000) (0) (0) (0) (381,000) (0) (381,000) Planting Program Budget 600,000 0 0 0 0 600,000 0 600,000 Carryover (0) (348,485) (0) (0) (0) (348,485) (0) (348,485) Greenhouses (Intergovernmental Agreement with Milwaukee County) Carryover (0) (150,000) (0) (0) (0) (150,000) (0) (150,000) TOTAL FORESTRY SECTION Budget $796,500 $0 $0 $0 $0 $796,500 $0 $796,500 Carryover ($0) ($879,485) ($0) ($0) ($0) ($879,485) ($0) ($879,485) SANITATION SECTION Sanitation Hdq Modifications (Various Sites) Carryover ($0) ($1,629,000) ($0) ($0) ($0) ($1,629,000) ($0) ($1,629,000) TOTAL SANITATION SECTION Carryover ($0) ($1,629,000) ($0) ($0) ($0) ($1,629,000) ($0) ($1,629,000)

242 2004 PLAN AND BUDGET SUMMARY C. CAPITAL IMPROVEMENTS FUNDS

CITY GRANT PROJECT/ TAX GENERAL SPECIAL CASH BUDGET AND AID PROGRAM LEVY OBLIGATION TID ASSESSMENTS REVENUES TOTAL FINANCING TOTAL TOTAL DPW OPERATIONS DIVISION Budget $796,500 $26,202,000 $0 $0 $0 $26,998,500 $0 $26,998,500 Carryover ($0) ($30,560,992) ($0) ($0) ($0) ($30,560,992) ($0) ($30,560,992) DPW INFRASTRUCTURE SERVICES SECTION SEWER CONSTRUCTION Expansion of Capacity Sewer Program Budget $0 $4,000,000 $0 $0 $0 $4,000,000 $0 $4,000,000 Carryover (0) (3,169,000) (0) (0) (0) (3,169,000) (0) (3,169,000) Sewers Out of Program Developer Financed Budget 0 0 0 0 500,000 500,000 0 500,000 TOTAL SEWER CONSTRUCTION Budget $0 $4,000,000 $0 $0 $500,000 $4,500,000 $0 $4,500,000 Carryover ($0) ($3,169,000) ($0) ($0) ($0) ($3,169,000) ($0) ($3,169,000) BRIDGE CONSTRUCTION Major Bridge Program Budget $0 $5,650,809 $0 $0 $0 $5,650,809 $9,117,236 $14,768,045 Carryover (0) (4,767,000) (0) (0) (0) (4,767,000) (0) (4,767,000) TOTAL BRIDGE CONSTRUCTION Budget $0 $5,650,809 $0 $0 $0 $5,650,809 $9,117,236 $14,768,045 Carryover ($0) ($4,767,000) ($0) ($0) ($0) ($4,767,000) ($0) ($4,767,000) PAVING PROGRAM Street Reconstruction City Contribution to State and Federally Aided Projects Budget $0 $5,537,049 $0 $2,127,290 $0 $7,664,339 $38,185,745 $45,850,084 Carryover (0) (14,792,916) (0) (4,351,076) (0) (19,143,992) (0) (19,143,992) Street Reconstruction or Resurfacing Regular City Program Budget 2,565,000 0 0 1,435,000 0 4,000,000 0 4,000,000 Carryover (0) (2,000,000) (0) (5,655,000) (0) (7,655,000) (0) (7,655,000) Alley Reconstruction Program Budget 523,000 0 0 477,000 0 1,000,000 0 1,000,000 Carryover (0) (224,000) (0) (3,295,000) (0) (3,519,000) (0) (3,519,000) New Street Construction Program Budget 0 0 0 0 400,000 400,000 0 400,000 Carryover (0) (1,691,000) (0) (247,000) (0) (1,938,000) (0) (1,938,000) TOTAL CONSTRUCTION PROGRAMS Budget $3,088,000 $5,537,049 $0 $4,039,290 $400,000 $13,064,339 $38,185,745 $51,250,084 Carryover ($0) ($18,707,916) ($0) ($13,548,076) ($0) ($32,255,992) ($0) ($32,255,992) STREET IMPROVEMENTS Street Improvements Sidewalk, Driveway, and Gutter Replacement Budget $710,000 $0 $0 $1,140,000 $0 $1,850,000 $0 $1,850,000 Carryover (0) (150,000) (0) (3,549,500) (0) (3,699,500) (0) (3,699,500) Street Improvements Street Lighting Budget 3,200,010 443,592 0 0 0 3,643,602 0 3,643,602 Carryover (0) (3,689,790) (0) (2,069,000) (0) (5,758,790) (0) (5,758,790) Emergency Response Mgmt Opticom Program Carryover (0) (147,000) (0) (0) (0) (147,000) (0) (147,000) Street Improvements Traffic Control Facilities Budget 835,000 0 0 0 0 835,000 0 835,000 Traffic Signal Installation South 30th and West Oklahoma Budget 85,000 0 0 0 0 85,000 0 85,000 Traser Yard Parking and Storage Facility Carryover (0) (313,500) (0) (0) (0) (313,500) (0) (313,500) North Avenue Paving Project Carryover (0) (0) (0) (29,750) (0) (29,750) (0) (29,750) Underground Electrical Manhole Reconstruction Budget 0 221,000 0 0 0 221,000 0 221,000 Carryover (0) (21,000) (0) (0) (0) (21,000) (0) (21,000) Street Improvements Underground Conduit and Manholes Budget 780,000 0 0 0 0 780,000 900,000 1,680,000 TOTAL DPW-INFRASTRUCTURE SERVICES Budget $8,698,010 $15,852,450 $0 $5,179,290 $900,000 $30,629,750 $48,202,981 $78,832,731 Carryover ($0) ($30,965,206) ($0) ($19,196,326) ($0) ($50,161,532) ($0) ($50,161,532) TOTAL DEPARTMENT OF PUBLIC WORKS Budget $10,120,510 $42,054,450 $0 $5,179,290 $900,000 $58,254,250 $48,202,981 $106,457,231 Carryover ($0) ($63,024,710) ($0) ($19,196,326) ($0) ($82,221,036) ($0) ($82,221,036) TOTAL PROJECTS Budget $11,475,510 $61,494,450 $19,000,000 $5,179,290 $12,500,000 $109,649,250 $49,352,981 $159,012,231 Carryover ($0) ($92,467,422) ($27,916,180) ($19,196,326) ($0) ($139,579,928) ($0) ($139,579,928)

2004 PLAN AND BUDGET SUMMARY 243 D. CITY DEBT

EXECUTIVE SUMMARY

PURPOSE: To finance needed capital improvements at the lowest possible cost and to manage and control the amount of debt outstanding.

STRATEGIC Maintain the city’s bond rating by ensuring that the city’s outstanding debt level is manageable ISSUES: and affordable.

Continue to monitor the city’s debt levels, as well as the overlapping debt burden imposed on city residents by other local governments.

INITIATIVES Continue to develop and implement policies that utilize alternatively structured debt (i.e., reve- FOR 2004: nue bonds) to reduce the city’s reliance on general obligation debt.

Monitor Milwaukee Public Schools’ capital improvement needs and the impact on city debt levels and the tax levy.

Issue $200 million in Pension Refunding Bonds to fund Milwaukee Public School’s unfunded pension liability with the Wisconsin Retirement System.

Work to develop and adopt a comprehensive debt policy for long term debt capacity planning and capital financing guidance.

Develop a working debt forecast model that will allow city policymakers to analyze the impact of debt financing in future years.

BACKGROUND

The city has strong investment grade bond Table 1 ratings for general obligation debt from all three major rating bureaus. Recently, Fitch City Debt Indicators Relationship to Standard & Poor's Ratings assigned an AA+ rating to city bonds, Debt Benchmarks Moody’s Investors Services rated them Aa2, Debt Indicators S & P Rating and Standard & Poor’s rated them AA Stable. These ratings have been maintained during Economic the past year in spite of the second year of Income as % of 2000 National Avg. 79.0% Low national economic downturn and reductions Market Value per Capita $32,102 Moderate Taxpayer Concentration (ten top in state shared revenue to municipalities dur- taxpayers) 5.30% Diverse ing State of Wisconsin budget deliberations. As these ratings confirm, the city’s capacity to Financial Total General Fund Balances 14.00% Adequate meet its financial obligations is very strong. Unreserved Fund Balance (three year average) 4.00% Adequate These agency ratings reflect a combination of Property Tax Burden 5.70% Moderately High Milwaukee’s moderate overall debt burden, Debt rapid debt repayment, and manageable capital Direct Debt per Capita $1,843 Moderate needs. Strong growth in property value and a Direct Debt Percent of Market Value 5.7% Moderate diverse tax base have also been cited as Debt Maturing Within Ten Years 83.6% Standard is 50% strengths. The city’s “Infrastructure Cash Conversion Policy” has been recognized for

244 2004 PLAN AND BUDGET SUMMARY D. CITY DEBT keeping overall debt burden affordable. Overall, levels when compared to state and national aver- these strengths offset the perceived weaknesses of ages. Table 1 details the city’s performance on sev- moderate economic growth and lagging income eral commonly used debt indicators.

OVERVIEW

City debt is categorized as self-supporting debt and tion of the particular program for which debt was property tax levy supported debt. Included in the incurred. tax levy supported debt category is borrowing for school purposes, general city capital improvement The 2004 city debt expenditure needs total $118.7 borrowing, and all other purposes not included in million, a decrease of $76,118 from 2003. Table 2 the self-supporting debt category. Self-supporting shows expenditures for self-supporting and tax levy debt includes debt related to Parking, Tax Incre- supported city debt while Table 3 illustrates the dis- mental Districts, delinquent taxes, special assess- tribution of their funding sources. Highlights of the ments, land bank, and Water Works. Each debt major changes in city debt expenditures and funding category is financed with earnings from the opera- sources are contained in the following summary.

CITY DEBT EXPENDITURES AND SOURCES OF FUNDS

General City (Excluding Schools and Revenue Due to difficulty predicting exactly how much inter- Anticipation Notes): Debt service costs associated est is going to be expended in a single budget year, with city borrowing, namely for capital improve- the excess budgeted interest fund has been subject to ment projects, are estimated to total $41.6 million in variability over the years. The estimate to be applied 2004, a decrease of $5.6 million. The decrease is to reduce debt service costs in 2004 is $2.9 million, a primarily due to the use of $1 million in refunding decrease of $500,000 from 2003. Other sinking fund savings and the use of $5.5 million in sales premiums sources for general city debt repayment total about from August, 2003. $14.1 million in 2004.

The property tax levy for debt service in 2004 totals Milwaukee Public Schools (MPS): The city is re- $54 million, a decrease of approximately $760,000 quired under state law to issue debt for Milwaukee from 2003. If not for a change in the way the Public Public Schools and make principal and interest pay- Debt Amortization Fund withdrawal is used in the ments on this debt. Debt service costs associated 2004 budget compared to 2003, there would be a $3.2 with school borrowing will be $10.3 million in 2004, million increase in the levy. This year, it is reflected a decrease of $2 million from 2003 (see Figure 1). as a reduction in the city debt tax levy, whereas it has been reflected as a reduction in the capital Since 1989, the city has provided MPS with a total of budget tax levy in prior years. Other important $164.3 million in borrowing authority to help fund sources of revenue for the debt service fund are self- school improvements. These funds represent a sig- supporting debt revenues and other general debt nificant commitment on the part of the city to help budget revenues such as debt service sinking funds. MPS maintain and upgrade its facilities in order to enhance the educational environment for Milwaukee One of these sources, “excess budgeted interest” students. contains funds budgeted in previous years to make interest payments on outstanding city debt that were Besides providing assistance to MPS with regards to not expended. Sometimes, budgeted future interest their capital improvement needs, the city also issues expenditures are greater than what actually is short term Revenue Anticipation Notes (RANs) on needed, and as a result, the city carries funds over in behalf of the schools to assist them in their cash flow this account from one year to be made available in needs. Two other MPS debt service expenditures are the next. related to the Energy Retrofit Program and loans from the state. The city is fully reimbursed by MPS for debt service costs related to these issuances.

2004 PLAN AND BUDGET SUMMARY 245 D. CITY DEBT

Table 2

CITY DEBT EXPENDITURES

CHANGE 2004 ADOPTED 2003 2004 VERSUS PURPOSE ADOPTED ADOPTED 2003 ADOPTED SELF-SUPPORTING DEBT Parking $4,036,857 $4,058,736 $21,879 Tax Increment Districts 10,822,048 11,938,412 1,116,364 Delinquent Tax Financing 13,205,086 13,947,302 742,216 Special Assessments 3,594,743 3,834,219 239,476 Land Bank 90,885 88,593 -2,292 Water Works 7,272,938 6,866,957 -405,981 Sewer Maintenance Fund 11,040,936 11,934,100 893,164 Brewer MEDC Loan 1,931,800 1,870,991 -60,809 Port - South Harbor 0 203,617 203,617 MPS - Energy Retrofit 555,263 540,103 -15,160 MPS - Loans From the State 3,497,385 4,695,695 1,198,310 MPS - Pension Refunding Bonds 0 5,100,000 5,100,000 Pension System 641,328 614,658 -26,670 SUBTOTAL $56,689,269 $65,693,383 $9,004,114 TAX LEVY DEBT Schools $12,339,814 $10,331,893 $-2,007,921 General City 47,152,804 41,576,712 -5,576,092 RANs-City and MPS 5,917,500 4,960,000 -957,500 SUBTOTAL $65,410,118 $56,868,605 $-8,541,513

TOTAL DEBT NEEDS $122,099,387 $122,561,988 $462,601 Deduction for S.A. Gain 0 0 0 Deduction for Segregated S.A. -3,295,500 -3,834,219 -538,719 TOTAL $118,803,887 $118,727,769 $-76,118

Table 3

CITY DEBT SOURCE OF FUNDS CHANGE 2004 ADOPTED 2003 2004 VERSUS PURPOSE ADOPTED ADOPTED 2003 ADOPTED SELF-SUPPORTING DEBT Parking $4,036,857 $4,058,736 $21,879 Tax Increment Districts 15,653,716 13,944,841 -1,708,875 Delinquent Tax Financing 12,976,832 13,613,402 636,570 Special Assessments 0 0 0 Land Bank 0 0 0 Water Works 7,272,938 6,866,957 -405,981 Sewer Maintenance Fund 0 0 0 Brewer MEDC Loan 1,063,339 1,063,339 0 Port - South Harbor 0 203,617 203,617 MPS - Energy Retrofit 555,263 540,103 -15,160 MPS - Loans from the State 3,497,385 4,657,127 1,159,742 MPS - Pension Refunding Bonds 0 5,100,000 5,100,000 Pension System 641,328 0 -641,328 SUBTOTAL $45,697,658 $50,048,122 $4,350,464 GENERAL OBLIGATION DEBT FINANCING Other Revenues $18,343,996 $10,684,737 $-7,659,259 Public Debt Amortization Fund Withdrawal 0 4,000,000 4,000,000 Tax Levy 54,762,233 53,994,910 -767,323 SUBTOTAL $73,106,229 $68,679,647 $-4,426,582 TOTAL DEBT NEEDS $118,803,887 $118,727,769 $-76,118

246 2004 PLAN AND BUDGET SUMMARY D. CITY DEBT

MPS Pension Refunding Bond Issue: The Figure 1 2004 city debt budget includes a new appropriation of $5.1 million for expenses related to MPS’s $170 million unfunded pension School Non Self-Supporting Debt Service liability in its main Wisconsin Retirement $13,000 System (WRS) Pension Fund. In the early $12,000 1980’s, the state merged three pension sys- $11,000 tems together, raising participant benefits $10,000 and creating an $80 million unfunded liability $9,000 to be financed by all participating jurisdic- $8,000 tions. At the time, WRS estimated an addi- $7,000 $6,000 tional 2% payroll contribution would be suf- $5,000 ficient to fund the liability over a 40 year $4,000 period. This estimate turned out to be too $3,000 liberal, and the MPS portion of the liability $2,000 has increased to its current level of $170 mil- $1,000 lion, assessed at an 8% interest rate until it is $0 repaid. 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

With low interest rates in the 2003 bond market, it was determined that it would be beneficial to tured debt service payments. Beginning in 1998, the MPS taxpayers to borrow the funds at a lower inter- city started structuring TID debt differently to help est rate and prepay the liability. The $200 million minimize the revenue stream timing difference. This bond issue will be financed over 20 years and will debt structure capitalized the first 2 years of interest provide for pre-payment of the liability, a reserve payments and has a 17 year bond term. Some highly fund if needed, and issuance costs. MPS will fully successful TIDs experience revenues in excess of reimburse the city for any costs related to this issue their debt service requirements later in their lives. and will make annual debt service payments on the As a result, those TIDs often make distributions and debt. close-out prior to the end of their statutory life.

Tax Incremental Districts (TIDs): Wisconsin state Delinquent Taxes: The 2004 debt budget includes law provides a mechanism for municipalities to cre- $13.9 million to finance debt service costs associated ate Tax Incremental Districts for the purpose of gen- with delinquent tax borrowing or approximately erating revenue to pay for public improvements $742,000 more than in 2003. The increase is a small associated with development. Funding for these fluctuation in the annual program. Sources of districts is provided from borrowing and other out- funding for delinquent taxes are expected to be $13.6 side sources. When a district is created, an initial tax million in 2004, an increase of approximately base value for the property is established and frozen $637,000 from 2003. These revenues represent col- for the tax collections for overlapping jurisdictions. lections of delinquent taxes and a portion of related City investment in redevelopment projects within interest and penalties assessed. the TIDs is predicated on the assumption there will be increases in the property value above this base Parking Debt: The Parking Fund was established to value, a value increment. The taxes collected on the account for revenues from parking meters, parking value increment portion of the property are collected permits, rental and leasing of parking facilities, and as revenue to retire the debt incurred for city funded other revenues attributable to parking. Revenues are district improvements. In the 2004 debt budget, debt used to fund administrative and operational costs service associated with Tax Incremental Districts is related to parking operations, as well as to fund debt estimated to total $11.9 million. service costs related to borrowing for parking capital projects. A transfer from the Parking Reserve Fund TID revenues are projected to total $13.9 million in equivalent to the amount of annual outstanding debt 2004, $2 million greater than TID uses. The disparity service entirely offsets parking related debt service results from timing differences inherent in some TID costs. In the 2004 debt budget, the Parking Fund revenue streams. Early in a TIDs life, revenues are provides nearly $4.1 million to finance debt service generally insufficient to cover traditionally struc- costs associated with parking capital projects.

2004 PLAN AND BUDGET SUMMARY 247 D. CITY DEBT

Special Assessments: Certain infrastructure im- Sewer Maintenance: Approximately $11.9 million provements, such as repaving a street or alley, in- in debt service for 2004 relates to Sewer Maintenance clude a charge to the abutting property owners for a capital projects. These payments represent the portion of the project’s cost. The property owner outstanding Relief and Relay Sewer capital program, may either pay the entire amount when the bill is now funded within the Sewer Maintenance Fund. received, have the assessment placed on the next tax The last general city funded debt issuance for this bill, or pay the amount over six years with interest purpose took place in 2000, therefore, this debt charged for the final five years. When taxpayers service obligation will be fully retired in 2020. choose the six year option, the city borrows money to finance the project. The interest cost to the city is Miller Park Project: The 2004 city debt budget then offset by the interest charged to the property includes approximately $1.1 million in revenue to owners. The 2004 debt budget includes over $3.8 partially offset the $1.9 million debt service incurred million to finance debt service costs associated with by the city as a result of the Miller Park Stadium special assessment borrowing. project. This amount reflects an agreement that the city would transfer the payment stream from a Water Works: The 2004 debt budget includes $6.9 Milwaukee Economic Development Corporation million in debt service costs associated with the Wa- (MEDC) loan (for which the city issued general ter Works Enterprise Fund. Debt service costs asso- obligation debt) to the Southeastern Wisconsin ciated with these borrowings are reimbursed from Professional Baseball Park District. Water Works’ annual earnings. The 1995 budget included $89 million in borrowing authority for capi- In addition, the stadium agreement also called for tal projects to upgrade the water processing system, the issuance of $5.9 million of Parking Fund sup- including an extension of the Texas Avenue Water ported general obligation debt. In total, this agree- Intake further into Lake Michigan, installation of ment fulfilled the city’s commitment to the Miller ozone disinfection systems at the Howard and Park project. All debt service expense associated Linnwood Plants, and filtration process improve- with this agreement is funded with revenues from ments at both plants. the Parking Fund.

PUBLIC DEBT AMORTIZATION FUND (PDAF)

The Public Debt Commission oversees the Figure 2 use of the Public Debt Amortization Fund, which was created in 1925 by law. The fund Unsegregated Public Debt Amortization Fund balance is composed of interest earned by Beginning Year Balance and Annual Withdrawal assets of the fund, one-third of the general interest earnings of the city, and one-third of $80,000 interest received on delinquent personal $70,000 property taxes. At the end of 2003, fund as- $60,000 sets will be used to prepay a portion of the principal and interest on city debt due in $50,000

2003, which will result in a reduction in the $40,000 debt levy portion of the 2004 city debt $30,000 budget. For purposes of the 2003 and earlier budgets, the PDAF withdrawal was reflected $20,000 in the capital improvements budget by shift- $10,000 ing cash funded improvements to debt $0 funded improvements. Fund assets were 1996 1997 1998 1999 2000 2001 2002 2003 used to purchase the additional debt. The Beginning Year Balance Annual Withdrawal additional debt was then immediately canceled, thus avoiding future debt service costs.

248 2004 PLAN AND BUDGET SUMMARY D. CITY DEBT

The annual withdrawal is determined by balancing Figure 2 illustrates how the unsegregated portion of the competing goals of reducing the following year’s the PDAF balance has fluctuated over time. These debt service tax levy versus maintaining a reserve fluctuations are largely due to the PDAF’s invest- balance sufficient to help preserve the city’s bond ments in interest rate sensitive long term U.S. Treas- rating and meet potential debt related budget issues ury Securities. Interest earnings in the late 1990’s in future years. The PDAF withdrawal for 2004 hovered around $10 million annually. Declining budget purposes will be $4 million. interest rates have greatly reduced those returns in recent years. As a result, revenues are forecasted to be about $4 million this year. When combined with the $4 million withdrawal, the $44.6 million fund balance will remain stable in 2004.

OUTSTANDING DEBT AND DEBT SERVICE POLICY

As detailed in Table 4, the outstanding debt service requirements for the city totaled $855.3 million at Table 4 the end of 2002. Approximately 53% or $453 million of total out- Outstanding Debt Service Requirements by Purpose standing debt service requirements City of Milwaukee General Obligation Bonds and Notes is related to general city capital As of December 31, 2002 (In Thousands) purposes. About $224 million is Purpose Principal Interest Total % of Total for the street, sewer, and bridge Self-Supporting Debt systems, the largest component of Tax Incremental Districts $92,727 $35,996 $128,723 15.05% debt. An additional $177 million is Parking 22,589 4,999 27,588 3.23% for public facilities, $33 million is Water 42,489 12,422 54,911 6.42% for economic development related Delinquent Taxes 22,645 1,267 23,912 2.80% activities and $19 million is for Special Assessments 21,291 6,262 27,553 3.22% Land Bank 324 57 381 0.04% other miscellaneous projects. SUBTOTAL $202,065 $61,003 $263,068 30.76%

The remaining obligation is split Tax Levy Debt Economic Development $25,726 $7,236 $32,962 3.85% between MPS related debt service Public Facilities 135,137 41,572 176,709 20.66% ($139.4 million) and self- Streets, Sewers, Bridges 172,015 51,819 223,834 26.17% supporting debt service ($263.1 Other 17,154 2,188 19,342 2.26% million). A significant portion of School Debt 107,452 31,959 139,411 16.30% city debt is self-supporting even SUBTOTAL $457,484 $134,774 $592,258 69.24% though it is issued as general obli- Less Prepayment $0 $0 $0 0.00% gation debt. The concept of self- TOTAL REQUIREMENTS $659,549 $195,777 $855,326 100.00% supporting debt is that the use of Source: 2002 Comprehensive Annual Financial Report Exhibit I-3 borrowing proceeds will generate a stream of revenue that will offset related principal and interest payments. Since gen- debt is Tax Incremental Districts, which total $128.7 eral obligation debt generally carries lower interest million. The remaining components are Water $54.9 rates than revenue anticipation notes, it is less ex- million; Parking $27.6 million; special assessments pensive to issue. $27.6 million; delinquent taxes $23.9 million; and land bank $381,000. The six major categories of self-supporting debt are: Tax Incremental Districts, special assessments, de- General Obligation Debt Limits: Since the city’s linquent taxes, Parking, Water, and land bank. Out- ability to repay debt is primarily measured by its standing debt service requirements for these pur- property tax base wealth, the relationship between poses as of December 31, 2002, was $263.1 million or debt and property tax base trends is highly impor- approximately 30.8% of total debt service require- tant from the perspective of national bond rating ments. The largest component of self-supporting agencies. State statutes also limit direct general obli-

2004 PLAN AND BUDGET SUMMARY 249 D. CITY DEBT

gation borrowing to 5% of the equalized value Table 5 of taxable property in the city for municipal services and an additional 2% for school pur- Summary of Net Direct and Overlapping Debt poses. As of December 31, 2002, the city had As of December 31, 2002 used about 65% of its general obligation debt (In Thousands) limit, a decline of 5% since 2000. Percent Net Debt Applicable City Share Percent Debt Structure and Payout: The general pol- Governmental Unit Outstanding to City of Debt of Total icy of the Public Debt Commission for general Direct Debt City of Milwaukee $619,083 100.00% $619,083 54.14% obligation bonds is to issue a 15 year, level Overlapping Debt principal payment bond issues. This policy MATC 77,313 37.32% 28,853 2.55% produces higher payments in the early years Milwaukee County 489,152 45.70% 223,542 19.78% of a bond issue but produces lower total fi- MMSD 551,321 46.87% 258,404 22.87% nancing costs. As a result of this rapid debt TOTAL DEBT $1,736,869 $1,129,883 100.00% amortization schedule, 55% of principal is Source: 2002 Comprehensive Annual Financial Report, Table 9 retired in five years and 83.6% is scheduled to retire in ten years. trict (MMSD), and Milwaukee Area Technical Col- lege (MATC). Overlapping Debt: Not only do city taxpayers pay for debt incurred by the City of Milwaukee but they Table 5 shows the total direct and overlapping debt also pay for the debt of overlapping taxing jurisdic- for all jurisdictions as of December 31, 2002. The city tions. For Milwaukee residents, this includes the share totals $1.13 billion, of which the city’s direct combined debt obligation of all local units of gov- debt totaled $619.1 million, or 54.14% of total over- ernment including the City of Milwaukee, Milwau- lapping debt. kee County, Milwaukee Metropolitan Sewerage Dis-

OTHER DEBT (REVENUE BONDING)

Housing Authority and Redevelopment Authority Sewerage System Revenue Bonds: In 2001, the city Debt: The Housing Authority and the Redevelop- issued its first Sewerage System Revenue Bonds ment Authority of the City of Milwaukee are public instead of financing the Sewer Relief and Relay Pro- corporations established under state law with gram through general city debt. These bonds fi- authority to issue debt. The Housing Authority is- nance the cost of improvements of plant and equip- sues debt for the construction and renovation of ment for the collection, transportation and storage of housing for the elderly and low income persons, storm water and surface water including necessary including veterans. Redevelopment Authority obli- lateral, main, and interception sewers. This effort gations are issued for blight elimination, economic will preserve the condition of the current sewer sys- development, and urban renewal projects. Debt tem infrastructure by annually replacing a portion of issued by either entity is not considered a direct the sewer system. The Sewer Maintenance Fee, obligation of the city and, consequently, is not charged to system users, is used to repay these backed by its general credit or taxing powers. For bonds. Further discussion on the Sewer Mainte- additional discussion on the Housing Authority and nance Fund can be found in the “Sewer Maintenance Redevelopment Authority, see the “Department of Fund” summary in the 2004 Plan and Budget Sum- City Development” summary in the 2004 Plan and mary. Budget Summary.

250 2004 PLAN AND BUDGET SUMMARY E. DELINQUENT TAX (APPROPRIATION ACCOUNT)

EXECUTIVE SUMMARY

PURPOSE: To provide tax levy appropriation authority to fund the loss or shortfall resulting from the sale of tax deed parcels and to provide a reserve for delinquent taxes based on prior uncol- lectables.

STRATEGIC Provide a funding mechanism to finance uncollectable taxes without affecting the city’s tax ISSUES: levy.

INITIATIVES Continue efforts to return tax delinquent properties to the tax rolls and increase future city FOR 2004: revenue.

Continue to pursue in personam actions against delinquent taxpayers.

BACKGROUND

Over 50 years ago, the city created the Tax Deficit transaction was charged to the Delinquent Tax Fund Fund, the predecessor to the Delinquent Tax Fund. Appropriation Account. Therefore, the Delinquent Initially, this fund grew as a result of profits on the Tax Fund used tax levy dollars to fund losses suf- sale of tax deed properties. This pattern held true fered on uncollectable taxes and on the sale of tax until the mid-1970’s. However, since the mid-1970’s, deed properties. All costs related to maintenance, tax deed properties have generally been sold at a destruction, and hazardous waste removal per- loss. formed by the city prior to the city’s acquisition of the property are delinquent tax costs. By 1981, the reserve balance for the Tax Deficit Fund became negative. In 1990, the Comptroller identified The Comptroller has implemented accounting a liquidity problem relating to the city’s holdings of changes that became effective July, 2001. The Delin- uncollectable delinquent real estate and personal quent Tax Fund Appropriation Account in the Gen- property taxes. This contributed to the creation of eral Fund will be used exclusively to absorb losses the Delinquent Tax Fund. The Delinquent Tax Ap- on sales of delinquent tax properties acquired prior propriation Account provides tax levy resources to to July 1, 2001. Subsequent to July 1, losses on de- the Delinquent Tax Fund. linquent tax properties will be absorbed in the De- linquent Tax Fund. In the past, when a tax deed parcel was sold or transferred for city use, the net profit or loss on each

ACTIVITIES

Administration: The Comptroller’s Office adminis- for in the special revenue Delinquent Tax Fund. ters the appropriation to the Delinquent Tax Fund. Delinquent properties on the books as of June 30, Changes effective July 1, 2001 were made to the way 2001 will remain in the General Fund. the Comptroller’s Office administers foreclosed tax deed properties. The Delinquent Tax Fund Appro- The 2004 Delinquent Tax Appropriation Account priation Account, in the General Fund, will be used totals $1 million. The city will continue to take a exclusively to absorb losses on the sale of delinquent pro-active approach to redevelopment by expediting properties acquired before July, 2001. Delinquent the foreclosure of these properties so they may be taxes foreclosed as of July 1, 2001 will be accounted sold and revitalized for future use. Funding will be

2004 PLAN AND BUDGET SUMMARY 251 E. DELINQUENT TAX used to offset any losses incurred through the sale of ity of the Department of City Development. These these properties. duties include acting as a landlord if there is a tenant present, paying utility bills, and yard maintenance. Delinquent Tax Property Maintenance: Mainte- Costs associated with maintenance can potentially be nance of delinquent tax properties is the responsibil- recovered at the time the property is sold.

PROGRAM CHANGES

Sec. 75.106 Wis. Stats.: According to Sec. 75.106 delinquent taxes. To move from the test phase to Wis. Stats., the city can assign the right to property regular use of in personam actions, the Common tax foreclosure judgement (i.e. the right to become Council authorized an amendment of the Kohn Law owner) regarding tax delinquent environmental Firm Collection Contract. This contract enables brownfield properties to developers or other inter- Kohn to use in personam actions to collect delinquent ested parties. This new law allows the city to use its real estate taxes, in addition to collecting delinquent foreclosure powers to help third parties remediate personal property taxes. To the extent this program and redevelop brownfields. is successful, future tax deed foreclosures will be reduced in the special revenue Delinquent Tax Fund. In Personam Actions: By using in personam actions, the city has recovered approximately $1 million in

SUMMARY OF EXPENDITURES

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED Delinquent Tax Fund $1,000,000 $1,000,000 $1,000,000 $0

TOTAL $1,000,000 $1,000,000 $1,000,000 $0 SOURCE OF FUNDS

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED Property Tax Levy $1,000,000 $1,000,000 $1,000,000 $0

TOTAL $1,000,000 $1,000,000 $1,000,000 $0

252 2004 PLAN AND BUDGET SUMMARY F. COMMON COUNCIL CONTINGENT FUND

EXECUTIVE SUMMARY

PURPOSE: To provide budgetary authority and funding to pay for emergencies and other purposes that may arise during the year for which no express provisions have been made elsewhere in the city’s budget.

STRATEGIC Maintain the integrity of the fund as an “emergencies only” source of funds. ISSUES: INITIATIVES Continue to adhere to adopted guidelines and information standards in considering requests FOR 2004: for Contingent Fund withdrawals.

BACKGROUND

The Common Council Contingent Fund provides • Timelines and process requirements; and budgetary authority and funding to pay for emer- • Information that must be provided to the Fi- gency situations that require expenditures above and nance and Personnel Committee when a de- beyond budget authorizations. The fund also covers partment requests a Contingent Fund appropria- those situations for which no express provisions tion, including: have been made in the annual budget. Requests for Contingent Funds must meet one of the following 1. A statement of the action requested, includ- criteria: ing the specific departmental account to which the Contingent Fund appropriation is • Emergency circumstances; requested to be made; • Obligatory circumstances; and 2. Purpose of the action, which includes the • Fiscal advantage and/or compliance with fiscal program service or activity to be supported management principles. by the funding as well as the objectives to be accomplished; and Monies in this account may be expended only if ap- 3. A description of the emergency that prompts proved by three-quarters of the Common Council. the request. Recent expenditures from the fund have been made for snow and ice control, global pension settlement These information standards were established to expenses, the city’s collection contract, and legal fees ensure that the Finance and Personnel Committee is for outside counsel and expert witnesses. Funds that fully aware of all issues affecting Contingent Fund are not expended from the Contingent Fund revert requests. to the Tax Stabilization Fund. Limiting Contingent Fund requests to these criteria On December 18, 1992 the Common Council passed forces departments to manage within their allocated file number 921360 which established guidelines and budgets and discourages use of the fund for initiat- information standards relative to the Finance and ing new projects or programs. Personnel Committee’s review of Contingent Fund requests. These guidelines focus on:

ACTIVITIES

The 2004 budget includes $5 million for the Common As shown in Figure 1, Contingent Fund appropria- Council Contingent Fund. This is identical to the tions ranged between $5 million and $6.3 million amount provided in 2003. from 1990 through 2002. During that period, total expenditures ranged from 53% of the appropriation

2004 PLAN AND BUDGET SUMMARY 253 F. COMMON COUNCIL CONTINGENT FUND

in 1995 to 100% in 2000 and 2002. Although Figure 1 the Contingent Fund budget has been reduced since 1993 because expenditures were Common Council Contingent Fund well below appropriations, in recent years Appropriations and Expenditures expenditures have increased. Average expenditures from the Contingent Fund be- $7.0 tween 1996 and 2002 were $4.9 million, com- $6.0 pared to average expenses of $4.5 million between 1994 and 1999. $5.0 .. $4.0 In 2000, the entire fund was expended, partly as a result of a severe snowstorm in Decem- In Millions $3.0 ber, the largest snowfall in a single month in $2.0 Milwaukee since 1918. The snowstorm was so severe that for the first time since the $1.0

1970’s Wisconsin governments received fed- $0.0 eral disaster aid for snow removal. 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Appropriations Expenditures

SUMMARY OF EXPENDITURES

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED Common Council Contingent Fund [$5,420,458] $5,000,000 $5,000,000 $0

TOTAL [$5,420,458] $5,000,000 $5,000,000 $0 SOURCE OF FUNDS

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED Property Tax Levy $5,420,458 $5,000,000 $5,000,000 $0

TOTAL $5,420,458 $5,000,000 $5,000,000 $0

254 2004 PLAN AND BUDGET SUMMARY SPECIAL REVENUE FUNDS

This section of the budget includes funds supported appropriations in this section. Any property tax by revenues other than the city property tax levy. levies related to these special revenue funds are pro- Revenues other than the city property tax offset the vided in other sections of the city’s budget.

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENSE CATEGORY EXPENDITURES BUDGET BUDGET 2003 ADOPTED

G. Parking Fund $38,482,193 $42,387,797 $44,806,125 $2,418,328 H. Grant and Aid Project Fund 67,954,977 83,572,350 71,908,461 -11,663,889 I. Economic Development Fund 0 4,504,379 4,761,827 257,448 J. Water Works 84,730,227 90,118,579 108,075,206 17,956,627 K. Sewer Maintenance Fund 36,456,422 46,248,059 45,665,233 -582,826 M. Delinquent County Taxes Fund 8,531,457 9,000,000 9,500,000 500,000

TOTAL $236,155,276 $275,831,164 $284,716,852 $8,885,688

2004 PLAN AND BUDGET SUMMARY 255 G. PARKING FUND

EXECUTIVE SUMMARY

MISSION: To provide clean, safe on- and off-street parking in a manner which maintains the financial solvency of the Parking Fund and independence from city tax levy funding.

STRATEGIC Integrate parking policies and economic development goals. ISSUES: Maintain the fiscal health of the Parking Fund.

INITIATIVES Implement strategies for adjudication and collection of outstanding parking citations. FOR 2004: Pursue agreement for the disposition of unclaimed vehicles.

Continue to pursue implementation of kiosks for the payment and disbursement of night parking citations and the payment of parking citations.

Continue to implement a public awareness campaign on city parking regulations, registration of vehicles, and disposal of abandoned vehicles.

Pursue the sale of city owned parking structures.

BACKGROUND

The Parking Fund is an Enterprise Fund administered by the Department of Public Figure 1 Works (DPW). It receives revenues from parking activities, which finance the city’s on- Parking Fund Assets and off-street parking expenses. The Parking Fund was established in 1949 to finance the $60 operation and maintenance of parking me- $50 ters. Since that time its responsibilities have expanded to include managing city owned $40 parking structures and lots, towing, storing and disposing of vehicles, and managing $30 parking enforcement, information desk op-

erations and the citation processing contract. In Millions $20

The purpose of the Parking Fund is to allow $10 the city to finance parking activities through parking revenues rather than burdening tax- $0 payers through the property tax. As of De- 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 cember 31, 2002 the Parking Fund had $61 Cash Buildings Other million in assets and $23.9 million in total liabilities, most of which is for outstanding debt. General obligation debt decreased by $3 mil- a decrease of $3.3 million from 2000 to 2001 to an lion from 2001 to 2002. As shown in Figure 1, the increase of $4.8 million from 2001 to 2002. This in- fund’s assets are comprised primarily of buildings, crease reflects higher than anticipated revenues and whose value continues to increase. In addition, the lower than anticipated expenditures. fund’s cash assets had a significant turnaround from

256 2004 PLAN AND BUDGET SUMMARY G. PARKING FUND

DPW OBJECTIVE 15 Figure 2

Maintain the financial solvency of the Par k- ing Fund by generating net revenues from Parking Sources of Parking Revenue parking activities and making additions to Misc. Permits the fund’s cash reserves. .99% 6.66% Meters OUTCOME HISTORY (see page 162) 10.84%

Since the purpose of the Parking Fund is to Parking Citations 52.52% provide a self-supporting source of revenue Structures for city parking operations, a meaningful 18.76% measure of the fund’s performance is whether it fully funds its expenses and makes additions to its cash reserves. In order to Towing and fully fund expenses, including operating and Disposal 10.23% non-operating expenses, the Parking Fund must generate sufficient revenue from its operating activities. In 2004, this objective is allocated at $40.6 million including $1.3 million in • Surface Lots: The fund expects to recover 100% capital funding. of the costs associated with operating the surface lots. Figure 2 shows the sources of revenue to fund • Parking Meters: The Parking Fund’s 2004 goal parking operations exclusive of the withdrawal from for parking meters is to keep 99% of its approxi- reserves. As shown, the sources of revenue for the mately 6,400 meters operational at all times and Parking Fund are diverse and include at least six to service broken or malfunctioning meters different sources. The largest source of revenue is within 24 hours of receiving a service call. generated from parking citations. Parking citations • Parking Structures: The 2004 goal for the Park- are budgeted to generate $19 million or 52.52% of the ing Fund is to recover 100% of the cost associated Parking Fund’s total revenue in 2004. The second with operating the structures. most significant source of revenue is generated from city owned parking structures and lots. Approxi- • Parking Enforcement: The 2004 goal is to re- mately $6.8 million or 18.76% is projected to be gen- spond to parking complaints within one hour and erated in 2004. The 2004 budget projects that 33,000 to respond to 95% of abandoned vehicle com- abandoned or illegally parked vehicles will be plaints within eight hours. towed. Towing and disposal of vehicles is expected • Parking Information Desk: The 2004 goal is to to generate $3.7 million, or 10.23% of total revenues. answer all queued telephone calls within two A reflection of increased parking enforcement is the minutes. projected increase in parking meter and night parking permit revenues. These revenues are projected ACTIVITIES to total $6.3 million and comprise of 17.5% of total revenues. In addition, $359,424 or .99% in miscella- • Operation and maintenance of approximately neous revenues is projected to be generated. 6,400 parking meters located throughout the city • Operation of four and capital management of five Monitoring Performance: It is critical for the fund city owned parking structures to monitor its performance. The Parking Fund uses • Management of approximately 54 metered, the following performance measures for its pro- leased, and permit parking lots grams: • Towing illegally parked and abandoned vehicles and operating the city’s Tow Lot • Towing: The Parking Fund has established as its • Enforcement of the city’s parking ordinances goal for 2004 to recover 100% of the cost associated with vehicle towing and to have 50% of the • Administration of the city’s citation processing 33,000 towed vehicles returned to their owners. and collection contract

2004 PLAN AND BUDGET SUMMARY 257 G. PARKING FUND

• Administration of parking information desk and scofflaws whose vehicles are towed by the city night parking permissions and are retrieved by the owners. When the individual retrieves his/her vehicle at the Tow Lot PROGRAM CHANGES and there are eligible outstanding parking citations, a summons and complaint will be person- Tax Refund Intercept Program (TRIP): The city ally served by the Tow Lot staff. A municipal began participating in TRIP in the fall of 2002 for court date will be assigned to the individual unpaid parking citations for those persons with out- along with a summary of outstanding parking ci- standing balances over $300. This included 20,148 tations. Failure to appear in court may result in violators and $10.4 million in outstanding parking a default judgment and include suspension of citations. In the summer of 2003, TRIP was ex- vehicle registration, lien on assets, or warrant for panded to include those with outstanding balances an arrest. between $200 to $300. This includes an additional 3. Issue of Summons and Complaint on Major 16,557 violators who have $4.1 million in outstand- Scofflaws: Under this proposal the City Attor- ing parking citations. In the fall of 2003, the out- ney will issue a summons and complaint to ma- standing balance will be lowered to $100. This will jor parking scofflaws. Failure to appear in mu- include 32,968 violators with $4.8 million in overdue nicipal court may result in suspension of vehicle parking citations. Based on the city’s TRIP experi- registration, lien on assets, or warrant for an ar- ence to date, 50% of TRIP eligible accounts are actu- rest. ally certified with the State Department of Revenue 4. Credit Bureau Reporting: The city’s citation of which 18% of the amount certified was returned processing contractor will report major scofflaws in the first tax quarter. As of June 30, 2003 $1.1 mil- to the Credit Bureau. This information will be lion has been intercepted for unpaid parking cita- included on overdue notices to inform the tions. scofflaw that failure to pay a parking citation will result in a notification to the credit bureau. Strategies for Adjudication and Enhanced Colle c- tion Efforts: The Department of Public Works has Disposition of Unclaimed Vehicles: In 2002, over worked cooperatively with the City Attorney’s Of- 19,400 vehicles were left unclaimed at the city’s Tow fice and the Municipal Court to develop and imple- Lot. The city has two options to dispose of these ment strategies to deal with the large number of vehicles: recycle the vehicle or sell the vehicle for parking scofflaws. These strategies include the Mu- parts. Over 16,400 were recycled in 2002. The city nicipal Court obtaining jurisdiction for adjudication incurs costs to initially tow the vehicle, store the and enhanced collection efforts. These strategies vehicle, tow the vehicle to the recycler, and process will be implemented in the fall of 2003. the vehicle. The city receives revenue for the vehicles scrap value. In 2003, the city negotiated a con- 1. Utilization of Notice of Appearance Form: The tract with Miller Compressing to receive $4 more per purpose of this form is to address those indi- vehicle for scrap value and save $9.50 per vehicle for viduals who schedule an appointment with the towing and processing charges. The city should Citation Review Manager and miss the ap- save nearly $2 million over the 10 year contract. pointment. Over 50% of the individuals who schedule an appointment miss the first appoint- Implementation of Kiosks: In June, 2003 the city’s ment. If the individual wants to schedule a citation processing contractor issued a RFI to ven- court appearance to contest a parking citation, dors for the development of kiosks (ATM-like tech- he/she must now sign a “Notice of Appearance” nology) to sell and disburse night parking permits form, which will be available at the Violation and to pay parking citations. Three qualified ven- Bureau locations and at the Tow Lot. The form dors have responded and are currently negotiating contains the date on which the individual must with the city’s contractor. The intent is to locate appear in Municipal Court and information on these machines in city facilities and high traffic loca- all outstanding parking citations. Failure to ap- tions such as UWM and Marquette University. pear in court may result in a default judgment These machines will provide a more convenient way and include suspension of vehicle registration, to purchase night parking permits and will divert lien on assets, or warrant for an arrest. residents from the Police District Stations. DPW 2. Utilization of Summons and Complaint Form: plans to have a prototype available for demonstra- The purpose of this form is to address parking tion by the end of 2003.

258 2004 PLAN AND BUDGET SUMMARY G. PARKING FUND

Implementation of Public Awareness Campaign: City Comptroller recommended against the sale due DPW is launching a public awareness campaign, to the financial implications of losing state shared “Park Smart Milwaukee”, to educate the public on revenue. Because the state shared revenue formula the city’s parking regulations. The campaign will is no longer used to determine the payment, it is focus on issues such as night parking, night parking prudent to revisit the sale of the parking structures. permits, winter parking, vehicle registration, and vehicle disposal. The campaign will include notices Parking Revenues: The 2004 budget includes $19 in student and community newspapers and public million in parking citation revenue. Although issu- service announcements on television and radio. In ance is expected to decline due to greater compliance addition, the city is partnering with ParkMilwau- with parking regulations, the city’s participation in kee.com to expand their web site to include all the the Tax Refund Intercept Program (TRIP) should parking structures and lots east of the Milwaukee offset this decline. All other parking revenues are River. Currently, the web site only includes parking expected to remain consistent with 2002 actuals and information for west of the river. 2003 budgeted levels.

RFP for the Sale of City Owned Parking Structures: Transfer to the General Fund: The 2004 budget In 2004, the city will attempt to sell four city owned includes a transfer of $12 million to the General parking structures. A recent financial analysis pre- Fund, an increase of $3.7 million from the 2003 pared by the Comptroller’s Office reveals that the budget. Most of this increase reflects one time reve- present value of the structures range from $49 mil- nues from the sale of a parking lot, stormwater lion to $113 million with a baseline projection of $65 grants, and less than anticipated expenditures in million. In 2000, the city received a bid proposal of 2002. This payment finances all on-street parking $25.2 million for three structures. At that time, the activities and the sale of night parking permits.

CAPITAL PROJECTS

The 2004 budget includes capital funding totaling pairs at the Second and Plankinton, and 1000 North $1,305,900 for several projects. Funding of $250,000 Water Street parking structures. Finally, $688,900 is is provided for mechanical and structural mainte- included for repairs to the MacArthur Square struc- nance projects in the city owned parking structures. ture, including major repairs to the plaza area. In addition, $367,000 is included for structural re-

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS’ CHANGES - None

2004 PLAN AND BUDGET SUMMARY 259 G. PARKING FUND

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 126.25 126.25 126.25 0.00 FTEs - Other 0.00 0.00 0.00 0.00 Total Positions Authorized 128 128 128 0 DLH - Operations and Maintenance 211,085 227,250 227,250 0 DLH - Other Funds 0 0 0 0

EXPENDITURES Salaries and Wages $4,210,310 $4,520,011 $4,523,008 $2,997 Fringe Benefits 1,505,202 1,672,404 $1,628,283 -44,121 Operating Expenditures 12,242,127 13,587,174 $13,095,400 -491,774 Equipment 130,786 251,700 $242,600 -9,100 Special Funds 6,327,951 7,395,508 $7,010,934 -384,574 Retained Earnings 4,983,469 0 0 0 Transfer to General Fund 8,250,000 8,300,000 12,000,000 3,700,000 TOTAL $37,649,845 $35,726,797 $38,500,225 $2,773,428

Capital Projects $832,348 $6,661,000 $6,305,900 $-355,100 TOTAL $38,482,193 $42,387,797 $44,806,125 $2,418,328

STATEMENT OF REVENUES AND EXPENSES

OPERATING EXPENDITURES Structures $2,216,579 $2,715,673 $2,674,872 $-40,801 Meters 538,036 715,159 735,098 19,939 Permits 40,323 64,355 61,397 -2,958 Towing 4,081,133 4,597,492 4,249,880 -347,612 Lots 167,650 232,000 172,116 -59,884 Parking Enforcement 9,074,054 11,182,190 11,047,171 -135,019 Debt Service 5,012,710 5,173,800 5,286,598 112,798 PILOT 1,220,782 1,312,000 1,292,000 -20,000 Administration 480,944 524,420 548,757 24,337 Addition to Reserves 6,567,634 0 0 0 Contingent Fund 0 909,708 432,336 -477,372 Transfer Excess Revenue to General Fund 8,250,000 8,300,000 12,000,000 3,700,000 TOTAL $37,649,845 $35,726,797 $38,500,225 $2,773,428

OPERATING REVENUES Structures $6,589,508 $6,556,188 $6,571,855 $15,667 Meters 3,998,011 3,886,000 3,921,400 35,400 Permits 2,445,442 2,409,000 2,408,000 -1,000 Towing 2,088,090 1,903,000 2,000,000 97,000 Lots 239,330 228,000 216,000 -12,000 Citation Processing Service 0 392,200 0 -392,200 Parking Citation Revenue 20,248,778 18,900,000 19,000,000 100,000 Miscellaneous 329,000 0 359,424 359,424 Vehicle Disposal 1,711,686 1,452,409 1,700,000 247,591 Withdrawal from Reserves 0 0 2,323,546 2,323,546 TOTAL $37,649,845 $35,726,797 $38,500,225 $2,773,428

CAPITAL EXPENDITURES Structures $832,348 $6,661,000 $6,305,900 $-355,100 TOTAL $832,348 $6,661,000 $6,305,900 $-355,100

CAPITAL FINANCING Proceeds from Borrowing $832,348 $1,661,000 $1,305,900 $-355,100 Retained Earnings 0 5,000,000 5,000,000 0 Carryover Borrowing (informational purposes only) (0) (200,000) (1,094,000) (894,000) TOTAL $832,348 $6,661,000 $6,305,900 $-355,100

CAPITAL PROJECTS: Includes $1,305,900 for the following projects: a. Mechanical and Structural Maintenance - $250,000 b. Second and Plankinton - $217,000 c. 1000 North Water - $150,000 d. MacArthur Square - $688,900

260 2004 PLAN AND BUDGET SUMMARY H. GRANT AND AID FUND

EXECUTIVE SUMMARY

PURPOSE: The Grant and Aid Fund provides expenditure authority for federal, state, and other grants whose proceeds are restricted to operating expenditures for specific purposes. These expenditures are to be made in accordance with the grant and aid process as stated in Common Coun- cil Ordinance 940843.

BACKGROUND

This fund serves as a ”parent” account wherein Council resolution must be adopted to authorize a grant funds accumulate prior to allocation on a specific project, create a sub-account, and allocate project-by-project basis as the year progresses. Ex- specific funding from the parent account. The fund penditures cannot be made directly against the par- provides expenditure authority for both planned and ent account. In order to expend funds, a Common potential projects during the calendar year.

PROGRAM CHANGES

The 2004 grant and aid budget reflects an Table 1 increase in expenditure authority for grantor Comparison of Projected Grant Activity share of $3.9 million above 2002 actuals and a (Grantor Share) decrease of $11.7 million below the 2003 budget (see Table 1). The total grant and aid Department 2003 2004 Difference budget is 5.8% over 2002 actual expenditures DOA-Administration $32,224,000 $29,782,000 $-2,442,000 City Development 1,525,000 1,525,000 0 and 14% below the 2003 budget. Fire 5,047,428 30,000 -5,017,428 Health 17,701,822 16,204,120 -1,497,702 Most departments are anticipating less grant Library 940,000 846,300 -93,700 awards in 2004 compared to 2003. However, Police 11,112,467 10,569,459 -543,008 some of the reductions do not reflect actual Public Works 3,179,341 2,951,582 -227,759 decreased funding amounts. The Fire De- Unanticipated 11,842,292 10,000,000 -1,842,292 partment reduction is the result of converting Totals $83,572,350 $71,908,461 -$11,663,889 the County Paramedic Agreement to a revenue offset operating expense and much of the de- Development Block Grant (CDBG) Program. This is crease in the Health Department is the result of a reduction of $386,000 from 2003. In addition, an multi-year grants awarded in 2003 not being counted anticipated $7 million will be applied to the HOME for 2004 grant purposes. In addition, the unantici- Program, a decrease of $2 million from 2003. Other pated amount for grant awards is decreased by $1.8 various programs throughout the administration million. will also receive anticipated funding of $2.5 million.

Community Block Grant Administration: The The 2004 budget anticipates the reprogramming of Community Block Grant Administration anticipates $600,000 of 2004 CDBG funds to enhance city pro- receiving approximately $29.5 million in grant funds grams, including: in 2004. These funds will be used to continue neighborhood strategic planning efforts so as to ensure • Police - Police Overtime $500,000 that the city’s federal block grant allocation is tar- • DNS - Various Programs $50,000 geted toward city neighborhood priorities and • Library - Community Outreach and Technology needs. Approximately $20 million of this anticipated Center $50,000 funding will be applied toward the Community

2004 PLAN AND BUDGET SUMMARY 261 H. GRANT AND AID FUND

Health Department Grants: Excluding the CDBG 2004. This funding will primarily be applied toward Grant, the Health Department is the largest recipient the Law Enforcement Technology Grant ($3 million), of grant funding among city departments. The total Miscellaneous Homeland Security Grants ($3 mil- amount of grant projects anticipated in 2004 is $16.2 lion), High Intensity Drug Trafficking Area ($0.8 million. The Municipal Health Services Grant is the million), and the Juvenile Accountability Block Grant department’s largest grant at $7 million, although ($0.8 million). this is reduced by $1 million from 2003. Other large grants include the Women’s, Infant’s, and Children’s Fire Department Grants: The Fire Department an- Program (WIC) ($835,000), the Adolescent School ticipates receiving one grant totaling $30,000 in 2004 Health Grant ($515,000) and five grants related to for EMS funding assistance. In 2004, the County lead detection, poisoning prevention, and hazard Paramedic Agreement is converted from a grant reduction that total approximately $4 million. Grant award to revenue received within the city’s general funding for the Health Department is lower than in fund from Milwaukee County. This new revenue 2003 in part because multi-year grant awards re- offsets operating costs within the Fire Department ceived in 2003 are not reflected in 2004 grant totals. previously funded through the grant. For more information on the change in the County Paramedic Police Department Grants: The Police Department Agreement, please see the Fire Department section anticipates receiving grants totaling $10.6 million for of the 2004 Plan and Budget Summary.

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

Grantor Share (Non-City) $67,954,977 $83,572,350 $71,908,461 $-11,663,889 Local Share Out-of-Pocket (Current Levy) 0 0 0 0 TOTAL $67,954,977 $83,572,350 $71,908,461 $-11,663,889

262 2004 PLAN AND BUDGET SUMMARY H. GRANT AND AID FUND

The Community Development Block Grant Program projects and amounts for each project approved (by the Common Council under resolution) for 2004 are as follows: 2004 Community Development Contract Awards (Total award amounts listed alphabetically by organization) Organization Name Source of Funds Total Awards CDBG HOME SHELTER HOPWA Agape Community Center $25,000 $25,000 AIDS Resource Center of Wisconsin 448,000 448,000 Allied Churches Teaching Self-Empowerment (ACTS) 50,000 50,000 American Red Cross Greater Milwaukee Chapter 26,189 26,189 ASHA Family Service Inc 55,092 55,092 Boys and Girls Club of Greater Milwaukee 383,629 383,629 Career Youth Development 40,700 40,700 Center for Teaching Entrepreneurship 25,950 25,950 Children's Outing Association 185,020 185,020 City Clerk's Office 58,588 58,588 Community Advocates 196,049 68,465 264,514 Community Block Grant Administration 981,000 206,000 1,187,000 Comptroller's Office 593,000 74,000 667,000 Council for the Spanish Speaking Inc 33,257 33,257 Counseling Center of Milwaukee - Pathfinders Program 24,712 21,157 45,869 Daughters of Luke Ltd 222,720 222,720 Daystar Inc 26,590 29,514 56,104 Department of Administration 39,908 39,908 Department of City Development 1,695,900 2,400,579 4,096,479 Department of Neighborhood Services 2,551,605 2,551,605 Department of Public Works 282,750 282,750 Esperanza Unida Inc 180,102 180,102 Ezekial Community Development Corporation 160,000 160,000 Grand Avenue Club 42,511 42,511 Guest House of Milwaukee Inc 73,160 100,522 173,682 Harambee Ombudsman Project Inc 192,849 245,000 437,849 Health Department 1,931,352 1,931,352 Hispanic Chamber of Commerce of Wisconsin 60,000 60,000 Hmong American Peace Academy LTD 25,000 25,000 Hmong Educational Advancements 35,000 35,000 Hmong American Friendship Association 83,211 83,211 Hope House of Milwaukee Inc 147,740 89,526 237,266 Housing Resources Inc 55,700 55,700 Howard Fuller Educational Fund Inc 66,325 66,325 Journey House Inc 161,257 161,257 LaCausa Inc 27,590 30,975 58,565 Lao Family Community Inc 25,000 25,000 Latino Community Center 50,000 50,000 Layton Boulevard West Neighbors 65,000 65,000 Lincoln Neighborhood Redevelopment Corporation 100,000 100,000 Lincoln Park Community Center 90,510 90,510 Lisbon Avenue Neighborhood Development 327,956 327,956 Martin Luther King Economic Development Corporation 107,510 107,510 Merrill Park Neighborhood Association 133,000 133,000 Metcalfe Park Residents Association 38,000 38,000 Metro Milwaukee Fair Housing Council 114,024 114,024 Mid-Town Neighborhood Association 79,326 79,326 Milwaukee Alliance 50,000 50,000 Milwaukee Careers Cooperative 85,020 85,020 Milwaukee Christian Center 94,500 94,500 Milwaukee Christian Center - NIP 880,990 1,225,000 2,105,990 Milwaukee Community Service Corporation 100,000 100,000 Milwaukee Fire Department 462,000 462,000 Milwaukee LGBT Community Center Inc 25,000 25,000

2004 PLAN AND BUDGET SUMMARY 263 H. GRANT AND AID FUND

Organization Name Source of Funds Total Awards CDBG HOME SHELTER HOPWA

Milwaukee Public Library $749,431 $749,431 Milwaukee Urban League 75,000 75,000 Milwaukee Women's Center Inc 110,205 83,413 193,618 Minor Home Repair Pool-Security Installation-NON NSP 50,000 50,000 Modjeska Youth Theater Company 36,900 36,900 National Association of Minority Contractors Wisconsin 42,844 42,844 Neighborhood House of Milwaukee 60,788 60,788 Neighborhood Housing Services of Milwaukee 341,123 341,123 Non-Profit Center of Milwaukee Inc 95,020 95,020 North Avenue Community Development Corporation 48,344 48,344 Northeast Milwaukee Industrial Development Corporation 143,310 143,310 Northwest Side Community Development Corporation 215,010 215,010 Opportunities Industrialization Center of Greater Milwaukee 98,656 342,500 441,156 Project RESPECT Inc 38,000 38,000 RACM 1,642,930 1,642,930 Richard's Place 60,000 60,000 Rosalie Manor Community and Family Services 27,000 27,000 Safe and Sound 280,000 280,000 Salvation Army 99,882 99,882 Select Milwaukee Inc 77,810 270,000 347,810 Sherman Park Community Association 119,017 119,017 Silver Spring Neighborhood Center 65,000 65,000 Social Development Commission 383,789 101,790 485,579 Sojourner Truth House Inc 152,006 54,521 206,527 South Community Organization 276,553 763,097 1,039,650 Southside Organizing Committee 141,000 141,000 Task Force on Family Violence Inc 97,896 97,896 United Community Center 99,547 99,547 Walker's Point Youth and Family Center 73,184 23,792 96,976 West End Development Corporation 350,880 995,324 1,346,204 Wisconsin Correctional Services 42,510 42,510 Woodland Pattern Inc 25,000 25,000 Word of Hope Ministries Inc 42,510 42,510 Work for Wisconsin Inc 100,000 100,000 YMCA of Metro Milwaukee Community Development Corp 301,467 318,500 619,967 YMCA of Metro Milwaukee Holton Center 45,000 45,000 YMCA of Metro Milwaukee Northside 54,000 54,000 YMCA of Metro Milwaukee Parklawn 63,000 63,000 YWCA of Greater Milwaukee 54,167 44,254 98,421

Total All Sources of Funds $20,000,000 $7,000,000 $774,000 $508,000 $28,282,000

264 2004 PLAN AND BUDGET SUMMARY I. ECONOMIC DEVELOPMENT FUND

EXECUTIVE SUMMARY

PURPOSE: The Economic Development Fund provides expenditure authority for economic development purposes, including the Business Improvement District Program.

STRATEGIC Fund business improvement districts without impacting the city’s tax levy. ISSUES: INITIATIVES Continue to promote development in commercial areas by providing owner-financed FOR 2004: development.

BACKGROUND

In accordance with Sec. 66.608 Wis. Stats., the city budget, the city gives the dollars it collects to the has established over 30 Business Improvement Dis- BIDs. tricts (BIDs). Each year the BIDs, along with the city, develop a plan and budget. This budget becomes The 2004 budget for the Economic Development the basis for an assessment charged to area busi- Fund is $4.8 million. There is no tax levy impact in nesses in the BID. Because the BIDs do not have this fund. Revenue of $4.8 million will be received taxing authority, the city collects the assessment on from the BIDs. their behalf. Through an appropriation in the city

PROGRAM CHANGES

Business Improvement Districts are special assess- BID #11 (Brady Street Business Area) $130,594 ment districts created at the petition of local com- BID #13 (Oakland Avenue) $53,500 mercial property owners. There are 24 active BIDs BID #15 (RiverWalk) $384,393 throughout Milwaukee; each is governed by a local BID #16 (Uptown Triangle) $87,628 board. Collectively, these BIDs raise nearly $4.8 BID #17 (Northwest Area Business) $37,450 million annually for activities ranging from eco- BID #19 (Villard Avenue) $94,410 nomic development to administration and street- BID #20 (North, Prospect, Farwell Avenues)$154,622 scaping to public safety. The following is a list of the BID #21 (Downtown Management District) $2,339,590 BIDs for 2004 with their corresponding budgeted BID #25 (Riverworks) $161,560 amount: BID #26 (The Valley) $32,949 BID #27 (Burleigh) $32,955 BID #2 (Historic Third Ward) $502,484 BID # 28 (North Avenue Gateway District) $22,857 BID #3 (RiverWalk) $33,738 BID # 29 (Teutonia, Capitol, Atkinson) $57,409 BID #4 (Greater Mitchell Street) $99,464 BID #30 (Northern Junction) $0 BID #5 (Westown) $94,170 BID #31 (Havenwoods) $132,590 BID #8 (Historic King Drive) $156,777 BID #32 (Fifth Ward) $0 BID #9 (739 North Water RiverWalk) $28,444 BID #33 (Avenues Point) $0 BID #10 (Avenues West) $124,243

2004 PLAN AND BUDGET SUMMARY 265 I. ECONOMIC DEVELOPMENT FUND

BUDGET SUMMARY

CHANGE 2002* 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

Business Improvement Districts $0 $4,504,379 $4,761,827 $257,448 TOTAL $0 $4,504,379 $4,761,827 $257,448

* Included in the Miscellaneous Special Purpose Account Total 2002 - $3,927,292

266 2004 PLAN AND BUDGET SUMMARY J. WATER WORKS

EXECUTIVE SUMMARY

MISSION: Maintain the highest quality of service while providing a safe, reliable, and aesthetically pleasing supply of water.

Ensure that water service is a key contributor in sustaining the economic prosperity of the City of Milwaukee, while protecting the quality of Milwaukee’s environment.

STRATEGIC Maintain the ability to respond to the presence of chemical and biological threats in Lake ISSUES: Michigan.

Enhance the utility’s finances by adding new customers without incurring major capital expenditures.

Improve customer service and satisfaction.

INITIATIVES Continue to negotiate agreements to provide water service to new customers. FOR 2004: Continue implementation of organizational changes to achieve operational efficiencies.

Improve security to facilities based on the 2001 vulnerability assessment.

BACKGROUND

The Department of Public Works Water Table 1 Works is a municipally owned water utility regulated by the State of Wisconsin Public MILWAUKEE WATER WORKS RATE OF RETURN Service Commission (PSC). From its Howard Avenue and Linnwood Plants, Water Works 2000 Actual 2001 Actual 2002 Actual pumps and filters more than 46 billion gallons GROSS REVENUE* $62,102,777 $61,923,561 $69,584,144 of water annually from Lake Michigan. It Operating Expenses* delivers this water via 1,954 miles of mains to Operating Expenses $33,064,663 $33,071,776 34,531,670 approximately 853,000 customers. In addition Depreciation 8,956,247 8,917,426 10,514,028 Taxes 9,276,712 9,132,975 8,936,288 to water sales to Milwaukee residents and TOTAL OPERATING businesses, Water Works also provides whole- EXPENSES $51,297,622 $51,122,177 $53,981,986 sale water services to Milwaukee County insti- NET OPERATING INCOME $10,805,155 $10,801,384 $15,602,158 tutions and eight suburbs including Brown RATE BASE Deer, Butler, Greendale, Menomonee Falls, Utility Plant in Service $459,374,170 $466,668,127 $474,354,457 Shorewood, Wauwatosa, West Allis, and Me- Materials and Supplies 2,180,318 2,612,570 2,262,672 Accumulated Depreciation (117,975,776) (126,309,205) (137,020,311) quon. In 2003, the Common Council author- Contributions for Construction (71,994,889) (71,856,794) (72,212,968) ized Water Works to begin working on an RATE BASE - End of Year $271,583,823 $271,114,698 $267,383,850 agreement to provide wholesale service to RATE BASE - Average Net New Berlin. Water Works also provides retail Investment $269,976,677 $271,349,261 $269,249,274 service to Greenfield, Hales Corners, and St. RATE OF RETURN 4.00% 3.98% 5.79% (Net Operating Income/Rate Base) Francis. Sales to these suburban customers *Revenues and Expenditures are based on PSC accounting requirements and may differ from represent approximately 20.7% of total reve- budgeted amounts. nue.

2004 PLAN AND BUDGET SUMMARY 267 J. WATER WORKS

Since a high in 1976, water consumption has de- munities. Water Works will continue to look for clined 32% as a result of water conservation meas- new customers in the suburbs and the city. ures, as well as the loss of some water intensive industries. To cope with this declining consumption, The rates at which water is sold are regulated by the Water Works has cut costs by finding operational PSC. In 2001, the PSC authorized a rate increase and efficiencies, searched for new customers, and raised the Common Council made the increase effective as rates. of July, 2002. The new rate allows Water Works to achieve a maximum rate of return of 6.5%. As indi- The utility is implementing a long term strategy of cated in Table 1, between 2000 and 2002 the rate of reducing operating expenses by enhancing the effi- return has ranged from 4% to 5.79%. The rate of ciency of its operations. Methods include upgrading return will likely exceed 6% in 2003, as the 2002 rate technology, cross training and consolidating staff, increase will have been in effect for the entire year. and conducting more preventative maintenance to Typically, the rate of return initially rises after a rate avoid more costly repairs. increase, then decreases as the ratio of operating income to asset value declines. The rate will remain Water Works projects that 2004 operating revenues constant through 2003 and 2004 at $1.18 per 100 cu- will increase slightly to $69.6 million. Increased bic feet of water. revenues will result by selling water to other com-

DPW OBJECTIVE 6

Figure 1 Deliver sufficient water 100% of the time, as measured by the percent of main breaks back in service within 24 hours. Water Main Breaks OUTCOME HISTORY (see page 160) 1,000 900 Water Works plays an important economic 800 role in the community. By delivering a reli- 700 able and abundant source of water, busi- 600 nesses and residents alike can be certain that 500 this essential commodity will be available when needed. Additionally, Water Works 400 helps protect public safety by providing wa- 300 ter to the Fire Department via 19,623 hy- 200 drants. 100

0 The 2004 budget allocates $61 million to meet 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 the objective of fostering economic growth through reliable service including $38.9 mil- department’s two existing facilities on Cameron lion in Water Works expenditures, $20.9 million in Avenue and Lincoln Avenue. capital funds, and $1.2 in operating funds. The funds support business aspects of the operation such To ensure reliable delivery, Water Works employs as meter reading and service, billing, and customer an extensive crew of repair workers to perform pre- service. Additionally, these funds will support ventative maintenance on distribution mains and to maintenance and operation of Water Works distribu- repair them in the event of breaks. Water Works tion system as well as the design and engineering of strives to quickly repair mains and have them back mains. Capital funds of $12.6 million will support in service within 24 hours of a break. Water Works the replacement of mains, hydrants, and valves, Preventative Maintenance Program has proved ef- maintaining the necessary investment in capital in- fective, as main breaks have declined 23% since 1997 frastructure. Capital funds of $8 million will be allo- (see Figure 1). More breaks occurred in 2002 than cated to allow Water Works to purchase a new dis- the previous year, due to a lack of snow accumula- tribution facility. The new facility will replace the tion. Snow cover insulates underground mains from

268 2004 PLAN AND BUDGET SUMMARY J. WATER WORKS the cold, reducing the likelihood of breaks. The util- attract water based industries to Milwaukee. The ity also works diligently to repair ruptured mains 2003 budget created a new position that will market quickly. Water Works had 99% of main breaks back Milwaukee’s inexpensive and plentiful water to in- in service within 24 hours in 2002, surpassing its goal dustries nationwide in an effort to have them relo- of 95%. cate or expand here. If successful, this initiative would create jobs in the city and minimize future ACTIVITIES rate increases.

• Customer accounts Operational Efficiencies: The 2004 budget includes • Provide accurate billing and collection serv- several changes which are part of a multi-year effort ices to achieve significant operational efficiencies in the Water Works. This effort will reduce the need for • Quickly repair meter damages significant future rate increases by implementing the • Handle all customer inquiries in a timely, ef- best operating practices from other utilities. These ficient, and satisfactory manner practices will enable Water Works to maintain and • Distribution improve the high quality of its services while signifi- • Perform preventative maintenance cantly reducing operating costs. Position changes • Repair ruptured mains are highlighted in the table at the end of this section. Reductions to personnel in the Business Unit are • Engineer new and replacement mains, expected to have no adverse service impact. valves, and other capital facilities and assets Consolidating distribution facilities will allow Water PROGRAM CHANGES Works management to more efficiently assign staff and will reduce the need for some supervisory posi- Providing Service to New Customers: The Water tions. These efficiencies will be phased in over the Works has excess capacity at its two plants. It could coming years as retirements allow for position re- produce significantly more water with low marginal ductions. cost by taking advantage of this excess capacity. Water Works therefore has the opportunity to in- New Computer System: Water Works seeks to take crease net revenue by expanding water sales to new full advantage of technology to provide efficient customers. Water Works currently sells water to operations and excellent customer service. The 2004 residents of Milwaukee and 12 suburban communi- budget contains $3 million to replace Water Works’ ties and is currently in negotiations to provide water billing and customer data system, known as Munici- to New Berlin. Additionally, it is evaluating the sale pal Utility Package Software (MUPS). Water Works of water to Brookfield, Elm Grove, and is not only responsible for collecting revenue from Germantown. water sales, but also collects revenue for a variety of other municipal services such as Sewer Treatment Water service will be extended to new customers and Sewer Maintenance. The current system is when engineering studies indicate that it is feasible, cumbersome to use, slows the response time of cus- is consistent with city goals, and does not violate the tomer service representatives, and is unable to han- federal prohibition against inter-basin water diver- dle current demands. An additional $2 million was sion. This regulation prevents the utility from di- allocated in each of the 2002 and 2003 budgets for verting water outside of the Great Lake Basin, which this project. Water Works has hired a consultant to extends into eastern Waukesha County. Water used select a vendor that will ensure that the new system in the basin flows back towards the Great Lakes, meets all of the utility’s and city’s needs. while water used outside the basin flows toward the Mississippi River. By law, distribution of water To transition into the new system without disruption from the Great Lakes is limited to consumption for to service and revenue collections, Water Works will those within the Great Lakes Basin. hire one permanent and three temporary managers and technicians. In addition to looking for new customers among suburban communities, Water Works will work to

2004 PLAN AND BUDGET SUMMARY 269 J. WATER WORKS

DPW OBJECTIVE 10

Provide safe, sufficient, and aesthetically pleasing • Water Treatment - Minimize plant operating water at standards equal to or more stringent than and maintenance costs while fully complying required by the Safe Drinking Water Act by having with federal and state water quality standards. a 100% compliance rate in 2004. PROGRAM CHANGES OUTCOME HISTORY (see page 161) Vulnerability Assessment: In 2001, security experts The Water Works’ activities are intended to ensure from Sandia National Laboratories conducted a that customers are supplied with the highest quality thorough vulnerability assessment of Water Works drinking water. In 2004, the budget provides $24.5 facilities. The assessment identified areas in which million in Water Works funding, $1.7 million in capi- Water Works did well but also noted ideas for im- tal funding and $800,000 in operating funds for this provement. As a result of the study, Water Works objective. has been upgrading its electronic surveillance and its physical security barriers, such as fences and door In 2000, Water Works implemented a new outcome locks. Water Works will make security a top priority indicator to provide a more thorough and meaning- now and in the years ahead. It is currently one of ten ful measure of the safety of Milwaukee’s water: utilities that serve on the Critical Infrastructure Pro- percentage compliance with the Environmental Pro- tection Advisory Group, a national organization tection Agency’s (EPA) Safe Drinking Water Act formed in 2000 at the behest of former President Standards. Full conformance with this measure Clinton. indicates that Water Works follows required water treatment processes, monitor procedures, and meets Operational Efficiencies: During the last few years, maximum allowable contaminant levels 365 days of Water Works has reorganized its labor structure in the year or 100% of the time. Compliance is based its treatment facilities. Previously, the treatment upon monthly reports filed with the State of Wiscon- plants had 7 managers and 57 individuals in 15 dif- sin Department of Natural Resources. Compliance ferent job titles. Job descriptions were very strictly will protect the public’s health by reducing the risk defined and to complete one job required numerous of contaminants, such as cryptosporidium, in individuals, in sequence, to do their discrete tasks. drinking water. In 2000, Water Works achieved This was inefficient and allowed very little flexibility 100% compliance with the Safe Drinking Water Act. in assigning work. Maintenance personnel were Water Works employs a number of strategies to promoted to new titles after successfully competing minimize contaminants, including ozone disinfec- for a higher level of vacancy. With the reorganization, alum coalgulation, dual media filtration, fluori- tion, each treatment plant now has a maintenance dation, chloramine post-disinfection, as well as cor- staff who can respond to workload at either plant. A rosion control strategies to minimize lead contami- total of 3 managers oversee 37 individuals in 7 job nation from customer’s pipes. These multiple titles. strategies not only eliminate dangerous contaminants but also ensure clear, odor free water. A three-level skill based career track was developed for 18 of these positions. Individuals are promoted ACTIVITIES to a higher level when they demonstrate proficiency in specified skills and do not need to wait for a va- • Supply and Pumping - Optimize operation to cancy. The benefits include cross training, increased minimize costs while ensuring proper mainte- skill level, and fuller utilization of personnel to fully nance of purification, pumping, and storage fa- complete assigned tasks. Employees are motivated cilities. to achieve higher skill levels as they are financially rewarded when they reach the next tier.

CAPITAL PROJECTS

The six year capital plan was completely reevaluated improvement projects. The 2004 Water Works’ capi- in 2001 to reflect changes in priorities as a result of tal improvements budget is $22.6 million. This in- the completion of the major water quality plant cludes:

270 2004 PLAN AND BUDGET SUMMARY J. WATER WORKS

• $12.6 million for water main, hydrant, and valve • $300,000 to replace the roof covering the Ozone improvements $11 million of this amount will Building at the Linnwood Purification Plant, replace distribution mains (16 inches in diameter which houses equipment to disinfect the water and smaller) and $1 million will replace feeder supply. The current roof leaks rainwater and mains (20 inches in diameter and larger). These failure to correct the problem could lead to con- improvements will maintain the reliability of tamination of the water supply after it has been water delivered to citizens, businesses, and fire treated. protection services. The replacement program targets mains that have a history of breaks. The • $450,000 to replace current filter valve controls remaining $600,000 will be funded by developers to increase the efficiency of the chemical treat- for mains in new developments in accordance ment process at the Linnwood Plant. with the Milwaukee Code of Ordinances. • $200,000 to replace a chemical mixing system at • $8 million for purchasing a new distribution the Howard Treatment Plant. The current sys- facility. This central facility would replace the tem requires frequent repairs. An additional two current distribution facilities on Cameron $200,000 is scheduled for this project in 2005. and Lincoln Avenues, and will reduce unnecessary duplication of services and equipment. Re- • $750,000 to replace switch gears at the Linnwood alizing these efficiencies could save up to $1.1 Plant. The current system is old and replace- million dollars annually. Rehabilitation of these ment parts are difficult to acquire. An addi- existing facilities to keep them in service would tional $750,000 is scheduled for this project in require $5 million. Water Works was authorized 2005. to spend $9 million on this project but the authority has expired. • $300,000 to replace the roof covering the Meter Repair Shop. The current roof is 20 years old The remaining $2 million in the capital budget is and is leaking. primarily for improvements in the Water Works plants, including:

2004 PLAN AND BUDGET SUMMARY 271 J. WATER WORKS

BUDGET SUMMARY CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED PERSONNEL FTEs - Operations and Maintenance 327.06 375.63 360.12 -15.51 FTEs - Other 12.50 12.28 12.28 0.00 Total Positions Authorized 388 382 363 -19 DLH - Operations and Maintenance 588,704 676,134 648,216 -27,918 DLH - Other Funds 22,492 22,104 22,104 0

EXPENDITURES Salaries and Wages $15,236,385 $15,527,137 $15,862,484 $335,347 Fringe Benefits 5,029,746 5,745,039 5,869,117 124,078 Operating Expenditures 25,984,793 29,285,228 31,680,385 2,395,157 Equipment 1,024,935 1,511,175 1,473,220 -37,955 Special Funds 3,257,783 8,850,000 8,550,000 -300,000 TOTAL $50,533,642 $60,918,579 $63,435,206 $2,516,627

CAPITAL BUDGET SUMMARY CAPITAL BUDGET Main Program $8,787,036 $11,600,000 $12,620,000 $1,020,000 Plants and Other 1,115,948 3,300,000 10,000,000 6,700,000 TOTAL CAPITAL BUDGET $9,902,984 $14,900,000 $22,620,000 $7,720,000

CAPITAL FINANCING Retained Earnings $9,826,329 $14,300,000 $22,020,000 $7,720,000 Assessments 10,800 0 0 0 Developer Financed 65,855 600,000 600,000 0 TOTAL CAPITAL FINANCING $9,902,984 $14,900,000 $22,620,000 $7,720,000 STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN RETAINED EARNINGS REVENUES Operating $68,552,488 $69,232,872 $69,611,574 $378,702 Non-Operating 6,274,755 5,500,000 6,660,000 1,160,000 Withdrawal From Retained Earnings 0 485,707 9,183,632 8,697,925 TOTAL REVENUES $74,827,243 $75,218,579 $85,455,206 $10,236,627

EXPENDITURE AUTHORIZATIONS Operating $50,533,642 $60,918,579 $63,435,206 $2,516,627 Capital Funding 9,826,329 14,300,000 22,020,000 7,720,000 Debt Service on Principal 5,716,317 0 0 0 Deposit to Retained Earnings 8,750,955 0 0 0 TOTAL AUTHORIZATIONS OPERATING AND DEPOSITS $74,827,243 $75,218,579 $85,455,206 $10,236,627

CAPITAL PROJECTS - Includes $22,620,000 for the following eight projects: a. Replacement of Mains - $11,000,000 b. Extension of Mains - $1,620,000 c. New Distribution Facility - $8,000,000 d. Roof Replacement of Ozone Building at Linnwood Plant - $300,000 e. Linwood Plant Improvements - $450,000 f. Howard Plant Improvements - $200,000 g. Roof Replacement at Meter Repair Shop - $300,000 h. Pump Facilities Improvement - $750,000

272 2004 PLAN AND BUDGET SUMMARY J. WATER WORKS

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason Business Decision Unit -1 -1.00 $-65,496 Water Systems Analyst Reclassification of one position and addition of one position for 2 2.00 $139,738 Network Manager computer system upgrade.

1 1.00 $61,941 Database Analyst Added for computer system upgrade. 1 0.50 $58,090 Water Revenue Manager (Aux.)

$20,838 Water Security Manager

-1 -1.00 $-55,154 Management Accounting Specialist

0.50 $26,261 Accountant III Positions reclassified.

-1 -1.00 $-46,785 Economic Development Specialist Sr

1 1.00 $50,415 Water Marketing Specialist

-1 -1.00 $-27,159 Office Assistant II Vacant positions eliminated. -1 Water Meter Services Coordinator

-1 -1.00 $-38,152 Water Meter Investigator (Aux.)

-2 -2.01 $-61,812 Water Meter Technician I

-1 -1.00 $-34,888 Water Meter Technician II 2003 Meter Services consolidation.

1 1.00 $47,986 Meter Reader Supervisor (Aux.)

-1 -1.00 $-36,109 Water Meter Specialist

-1 -1.00 $-40,083 Water Revenue Collector Process Improvement.

Plants North Decision Unit -1 -1.00 $-61,451 Water Plant Maintenance Assistant Supervisor Positions reclassified. -1 -1.00 Water Plant Manager

1 1.00 $64,562 Water Maintenance Manager Vacant position eliminated.

-1 -1.00 $-45,300 Water Plant Steamfitter

-1 -1.00 $-42,066 Water Plant HVAC Specialist

2 2.00 $91,789 Water Plant Steamfitter/HVAC Specialist Plant Maintenance reorganization. -8 -8.00 $-294,785 Plant Mechanic II

-4 -4.17 $-177,965 Machinist I

8 8.00 $319,669 Machine Repair Person

-2 $17,290 Water Plant Laborer Part time position consolidated to -0.50 full time.

2004 PLAN AND BUDGET SUMMARY 273 J. WATER WORKS

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-57,658 Water Maintenance Scheduler

-1 -1.00 $-37,063 Program Assistant I

2 2.00 $78,376 Program Assistant II Positions reclassified.

-5 -5.00 $-214,323 Instrument Technician I

5 5.00 $234,498 Water Plant Instrument Specialist

-1 -1.00 $-34,309 Electrical Mechanic Apprentice Process improvement.

Engineering Decision Unit -1 -1.00 $-31,136 Office Assistant III Vacant positions eliminated. -1 -1.00 $-42,325 Engineering Drafting Technician IV

-0.09 Miscellaneous Adjustment

Distribution Decision Unit $7,870 Water Distribution District Supervisor Positions reclassified. $5,291 Water Distribution Supervisor II

-1 -1.00 $-45,016 Water Distribution Supervisor I Vacant position eliminated.

-2 -2.00 $-68,366 Office Assistant IV

2 2.00 $72,986 Communications Assistant IV

-3 -3.00 $-96,903 Office Assistant IV

3 3.00 $104,378 Communications Assistant III

$11,647 Field Investigator Positions reclassified.

-1 -1.00 $-36,253 Pipe Yard Crew Leader

1 1.00 $38,089 Water Materials Handler

-1 -1.00 $-41,070 Technical Coordinator

1 1.00 $46,111 Network Coordinator Sr

-1 0.84 $50,693 Water Distribution Laborer Part time positions consolidated into full time positions.

-1 -1.00 $-55,310 Distribution Services Specialist Vacant position eliminated.

-1.42 Miscellaneous Adjustment

Water Quality Decision Unit -1 -0.99 $-61,941 Plants Operation Manager Management consolidation.

1.00 $65,496 Water Quality Analyst Improved water quality monitoring.

Plants South Decision Unit -1 -1.00 $-43,889 Water Plant Maintenance Assistant Supervisor Positions reclassified. 1 1.00 $64,562 Water Maintenance Manager

274 2004 PLAN AND BUDGET SUMMARY J. WATER WORKS

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason

-1 -1.00 $-45,300 Water Plant Steamfitter

-1 -1.00 $-42,066 Water Plant HVAC Specialist

2 2.00 $91,789 Water Plant Steamfitter/HVAC Specialist Plant Maintenance reorganization. -4 -4.00 $-144,768 Plant Mechanic II

-3 -3.00 $-130,085 Machinist I

-2 -2.00 $-75,135 Booster Station Operator

9 8.83 $382,141 Machine Repair Person -19 -15.51 $-177,615 TOTAL

2004 PLAN AND BUDGET SUMMARY 275 K. SEWER MAINTENANCE FUND

EXECUTIVE SUMMARY

STRATEGIC Provide for fair distribution of sewer maintenance costs based on usage. ISSUES: Maintain an efficient and effective sewer system.

Improve storm water quality to meet federal and state requirements.

Provide a high level of customer service and satisfaction.

INITIATIVES Increase cash financing for the Relay Sewer Capital Program. FOR 2004: Continue to implement requirements of the Wisconsin Department of Natural Resources (DNR) Storm Water Permit, including revising existing ordinances for erosion control and storm water.

Continue the study of storm sewer fee options and recommend an option for implementation.

BACKGROUND

The City of Milwaukee maintains a sewer system • To fairly distribute sewer maintenance costs that transports sanitary sewage to Milwaukee Met- according to usage; ropolitan Sewerage District (MMSD) treatment fa- • To require property tax exempt sewer users to cilities, and storm water to lakes and rivers. pay their portion of the sewer costs; and • To allow for direct comparison of costs and tax The 1998 budget established a new enterprise fund rates with other municipalities that recover for sewer maintenance expenses. The Sewer Main- sewer costs through a user fee. tenance Fund (created in accordance with Wisconsin State Statutes, Section 66.0821, which permits mu- The Department of Public Works Infrastructure nicipalities to implement sewer fees to recover the Services Division administers the Sewer Mainte- costs of operation, maintenance, repair, and depre- nance Fund, including oversight of personnel and ciation of sewer collection and transportation facili- activities. The city bills and collects for the sewer fee ties) recovers sewer maintenance costs through a as part of the city’s quarterly Municipal Service Bill. user fee rather than through the property tax. The Milwaukee Water Works records billing and collection information and revises fee amounts as The City of Milwaukee implemented a Sewer Main- needed. tenance Fee to achieve three principal goals:

2004 Sewer Maintenance Rate

The 2004 rate for the Sewer Maintenance Fee will ers are not typically metered, the city has experi- equal $1.1094 per 100 cubic feet (ccf) of discharged mented with different methods of estimating resi- water, representing no increase over the 2003 rate. dential sewer usage.

Sewer fees are charged to three customer classes: In 2002, residential sewer usage was estimated to be residential, certified, and non-certified. Residential 96% of actual water consumption. In 2003, the customers pay a fee based on the amount of water Common Council changed the method for estimat- they discharge into the sewer system. Because sew- ing residential sewer consumption to a “modified

276 2004 PLAN AND BUDGET SUMMARY K. SEWER MAINTENANCE FUND

winter quarter” approach. This Table 1 method will remain in effect through 2004. Under this method, the amount Change in Sewer Maintenance Rate of water consumed in the winter quar- Charge per 100 Cubic Feet (ccf) ter is used as the basis for estimating Percent Impact on Change from Change in Single Family the average amount of water that is 2003 Rate Change in Rate Residence returned to the sewer. Water con- Revenue Changes sumption in the winter tends to be Consumption Estimate Revision 3,424,774 -12.02% $-0.1333 $18.76 Non-Fee Revenues 42,400 -0.15% $-0.0017 $-0.03 lower than water consumption in the Total $3,467,174 -12.17% $-0.1350 $18.73 other three months. During non- Cost Changes winter months, water may be used for Personnel 315,927 1.11% $0.0123 $0.24 purposes, such as watering lawns and Operating Expenses -1,892,644 -6.64% $-0.0737 $-1.42 Equipment -521,960 -1.83% $-0.0203 $-0.39 washing cars, that involve little or no Other Expenses -284,149 -1.00% $-0.0111 $-0.21 discharge into the city’s sewer system. Capital Cash Financing 5,850,000 20.53% $0.2277 $4.38 Total Cost $3,467,174 12.17% $0.1350 $2.59 In the winter quarter, actual water Total Change $0 0% $0 $21.32 Est. Single consumption is used for billing pur- Est. Total Family Single Family poses. In the subsequent three quar- Consumption User Fee Rate Consumption Impact ters, actual water consumption or Total 2004 28,539,511 ccf $31,661,733 $1.1094 96 ccf $106.52 Total 2003 25,452,460 ccf $28,236,959 $1.1094 77 ccf $85.20 winter quarter consumption of at least Difference 3,087,051 ccf $3,424,774 $0.0000 19 ccf $21.32 21 ccf, whichever is less, is used for billing purposes. The winter quarter Storm Fee Study: Under the Wisconsin Pollutant consumption floor of 21 ccf ensures that residents Discharge Elimination System (WPDES) Municipal who have extremely low winter quarter usage will Storm water Permit, the city is responsible for im- pay an appropriate amount for sewer usage in non- proving water quality in Milwaukee by reducing the winter months. amount of pollutants entering storm water runoff or otherwise entering the storm sewer system. To en- One inequity with the winter quarter method that sure permit compliance, the city is required to moni- was used in prior years was that residents who had tor storm water quality, clean catch basins and storm low winter quarter usage, in some cases zero usage, inlets, collect leaves and sweep the streets, clean did not pay their fair share for sewer usage in the sewers, detect and remove illicit connections and other three quarters. The amount of 21 ccf is based discharges, reduce construction site runoff, educate on the median winter quarter usage for residents in the public about runoff pollution, reduce pollution 2002. from city facilities, and construct and reconstruct sewers that carry storm water. Consumption for non-residential properties is based on either actual consumption or certified consump- These activities are currently funded through the tion. Some companies, such as Miller Brewing Sewer Maintenance Fund and recovered through a Company, use large quantities of water that is not consumption based fee. Consumption is directly discharged into the city’s sewer system. These com- related to the volume of sanitary sewage that is dis- panies certify the amount of water discharged to the charged into the city’s sewer system, making this an sewer through the Milwaukee Metropolitan Sewer- appropriate basis for recovering the costs of main- age District and are charged accordingly. taining the sanitary sewer system. However, recovering storm water management costs on the basis of As indicated in Table 1, the sewer maintenance rate consumption does not allocate these costs to resi- will not increase in 2004. Consumption in 2003 has dents and businesses in the most equitable manner. been higher than estimated, and consequently, the actual average annual sewer maintenance bill for A more equitable method for recovering storm wa- single family homeowners is also substantially ter costs would be on the basis of impervious surface higher than the estimated bill of $85.20. In 2004, the area. An impervious surface does not allow storm average single family homeowner will likely pay water to soak into the ground. The amount and $106.52 for sewer maintenance, which is approxi- quality of storm water runoff is strongly correlated mately what they paid in 2003. with the amount of impervious surface area. Imper- vious surfaces, such as roofs, sidewalks, and drive-

2004 PLAN AND BUDGET SUMMARY 277 K. SEWER MAINTENANCE FUND ways, result in more runoff and limited infiltration. the amount of sewers that need to be replaced. In This increases the rate and volume of storm runoff the 1920’s and 1950’s, the city dramatically expanded and reduces groundwater recharge. the sewer system as the city grew. The average useful life of a sewer is 90 years and the large amount of Additional study and analysis is needed before im- sewers installed during the first wave of expansion plementing a storm fee. One key area is ensuring will likely need to be replaced in the next decades. that the storm fee satisfies all applicable legal re- City management will seek new ways to contain this quirements. Analysis needs to be conducted to iden- looming cost, and develop approaches to fix the tify properties in the city that could have adjust- most critical sewers first; however sewer costs and ments or exemptions from the fee, because they do the sewer fee will rise in the years ahead. Failure to not use the city’s sewer system or for other reasons. replace aging sewers in a timely manner could lead to costly sewer backups, failures, and flooding. Future Pressures on Sewer Maintenance Rate: Although it will not increase in 2004, several factors Second, the city is experimenting with approaches to will likely drive the rate higher in the coming years, finance more sewers construction with cash, rather including rising capital costs, increased cash financ- than debt. Cash financing reduces the long-run cost ing of capital, and possible DNR or MMSD man- of capital by avoiding interest payments on debt. dates. Cash financing places upward pressure on the sewer fee rate in the short term, but will allow the fee to First, to adequately maintain the city’s aging sewer stabilize in the long term. system, the city will have to invest more in its Sewer Replacement Program in the coming years. Al- Finally, mandates from DNR or MMSD could affect though sewers are replaced according to their actual costs in the Sewer Fund, and consequently, the condition, age of the system is a good proxy for es- sewer rate. timating

DPW OBJECTIVE 12

Provide and maintain systems for storm and waste water conveyance by limiting service Figure 1 backups to 45 to 55 incidents and street flooding to 3,000 incidents in 2004. Number of Clogged Sewers Causing Backwaters

OUTCOME HISTORY (see page 161) 80

The City of Milwaukee has 2,458 miles of 70 underground sewers with over 120,000 man- 60 holes, catch basins, and storm inlets. In 2204, 50 $52.5 million is allocated to this objective including $26.4 million in operating funding 40 of which $24.2 million is under the direction 30 of the Sewer Maintenance Fund. This in- 20 cludes $26 million in capital funding of which $21.5 million is in the Sewer Fund. 10

0 The number of clogged sewers causing back 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 water and the number of street floodings are important indicators of the condition of the city’s sewer systems. These types of com- inlets, inlow/infiltration both from the city system plaints indicate potential clogged sewers and catch and private services, illegal connections, collapsed basins/storm sewers, and/or poor hydraulics.

278 2004 PLAN AND BUDGET SUMMARY K. SEWER MAINTENANCE FUND

Figure 1 shows the number of incidents Figure 2 where back waters or sewerage flowed into homes between 1992 and 2002 because the main sewer was either clogged or had col- Number of Street Floodings lapsed. In 2002, the number of incidents increased to 58, a 26% increase from 2001. In 6,000 the last several years, reports of back waters have increased due to several temporary 5,000 circumstances that have influenced the ability to maintain a regular cleaning cycle. The 4,000 Sewer Fund is updating its equipment in an 3,000 effort to maintain its cleaning schedule and reduce back water problems. 2,000

Figure 2 shows the number of reported street 1,000 floodings between 1995 and 2002. These 0 reports decreased by 38% to 2,728 in 2002, in 1995 1996 1997 1998 1999 2000 2001 2002 part because of improvement to Lincoln Creek and the absence of major storm incidents. The fund continues to exceed its goals of keeping the number of reported street ACTIVITIES floodings under 5,000. • Design, engineering, and construction of new Weather conditions play a major role in these out- and existing sewers comes, explaining the extreme variability in the • number of complaints received from year-to-year. Clean and maintain sewers For example, severe storms in both 1997 and 1998 • Assess and examine sewer conditions resulted in severe flooding of the area’s drainage • Review storm water management plans for pri- channels, streams, and rivers. The city received vate properties over one acre. disaster relief funding from the Federal Emergency • Fund leaf collection, street sweeping, and the Management Agency in both years. river skimmer

Although the primary goal of the Sewer Fund is to PROGRAM CHANGES maintain an efficient sewerage system, another goal is to improve storm water quality. Unlike sewerage, Completion of Infiltration and Inflow Activities: storm water runoff generally flows untreated into The Sewer Maintenance Fund, in accordance with a area rivers and lakes. As the runoff moves toward mandate from the Milwaukee Metropolitan Sewer- these bodies of water, it picks up and carries various age District, has completed its program of more forms of pollutants, adversely affecting water qual- intensive investigation and remediation of infiltra- ity. The city improves the quality of the storm water tion and inflow into the city’s sewer system. The by meeting Federal Clean Water Standards moni- purpose of these activities was to reduce the amount tored by the Wisconsin Department of Natural Re- of infiltration and inflow into the city’s sewer sys- sources (DNR). tem, thereby minimizing the number of backups and other problems in the sewer system. As a result, the In 2002, the city complied with most of the Wiscon- Sewer Fund will decrease its operating budget in sin Pollutant Discharge Elimination System Permit 2004 by approximately $1.1 million. issued by the DNR. The DNR requires implementation of “Best Management Practices” designed to The Sewer Fund will purchase less equipment than reduce types and amounts of pollutants that flow in 2003. The fund was given authority to purchase into storm sewers. These practices range from several pieces of expensive sewer cleaning equip- regulating lawn fertilizing to street sweeping. How- ment in 2003, and with an updated fleet $500,000 less ever, the DNR charged that the city failed to ade- in equipment is needed for 2004. Also the budgeted quately enforce erosion control ordinances. As a cost to de-water waste removed from sewers before result, the city will hire a consultant to recommend it is land filled was adjusted to more closely reflect improvements in the city’s erosion control practices.

2004 PLAN AND BUDGET SUMMARY 279 K. SEWER MAINTENANCE FUND past experience, saving approximately $200,000. The will also decrease by $138,000 to reflect bond cove- amount budgeted for contingencies was reduced by nants. These changes and other reductions, when $275,000, as a small fund balance will likely be avail- combined with salary growth, yield a net reduction able after 2003 and could be used in the event of of $2.38 million in the Sewer Fund’s operating emergencies. The budgeted amount for debt service budget.

CAPITAL PROJECTS

The 2000 budget transferred the Relief and Relay the 2004 Plan and Budget Summary for more informa- Sewer Capital Program from the city’s capital im- tion on sewer capital programs. provement budget to the Sewer Maintenance Fund. This ongoing maintenance component of the city’s Cash Financing of Sewer Relay Program: In order sewer capital program is partly cash financed. The to realize long term savings by avoiding unnecessar- capital improvement budget still includes the expan- ily high debt service costs, a portion of the Sewer sion of capacity and developer financed sewer pro- Maintenance Relay Program is cash financed. The grams, which are managed by the Department of 2004 budget cash finances 36%, or approximately Public Works Infrastructure Services Division. The $7.8 million of the Sewer Maintenance Relay Pro- amount in new and existing sewer construction for gram. The fund is annually increasing the amount of 2004 is $26 million, with $21.5 million in the Sewer capital it finances in each year until full cash financ- Maintenance Fund and $4.5 million in the city’s capi- ing is reached. tal budget. See the Capital Improvements Section of

280 2004 PLAN AND BUDGET SUMMARY K. SEWER MAINTENANCE FUND

BUDGET SUMMARY

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

PERSONNEL FTEs - Operations and Maintenance 99.36 108.84 109.35 0.51 FTEs - Other 23.59 34.62 34.15 -0.47 Total Positions Authorized 193 209 198 -11 DLH - Operations and Maintenance 178,843 195,912 196,830 918 DLH - Other Funds 42,465 62,316 61,470 -846

EXPENDITURES Salaries and Wages $4,591,254 $4,723,769 $4,954,373 $230,604 Fringe Benefits 1,711,891 1,747,795 1,833,118 85,323 Operating Expenditures 7,772,352 9,315,394 7,422,750 -1,892,644 Equipment 302,557 1,145,000 623,040 -521,960 Special Funds 5,789,778 9,616,101 9,331,952 -284,149 TOTAL $20,167,832 $26,548,059 $24,165,233 $-2,382,826

Capital Projects $16,288,590 $19,700,000 $21,500,000 $1,800,000 TOTAL $36,456,422 $46,248,059 $45,665,233 $-582,826

REVENUES Retained Earnings $-8,098,193 $0 $0 $0 Charges for Services 56,772 261,100 220,500 -40,600 Miscellaneous Revenue 343,666 0 83,000 83,000 Proceeds from Borrowing 16,288,590 17,750,000 13,700,000 -4,050,000 Sewer Maintenance Fee 27,865,587 28,236,959 31,661,733 3,424,774 TOTAL $36,456,422 $46,248,059 $45,665,233 $-582,826 CAPITAL PROJECTS - The Sewer Maintenance Fund contains $21.5 million for the replacement or repair of existing segments of the sewer system of which $7.8 million is financed with cash and $13.7 million is funded with proceeds from borrowing. The city's capital budget includes an additional $4.5 million in the Department of Public Works Infrastructure Services Division for the following projects: a. Expansion of Capacity Sewer Program - $4,000,000 b. Developer Financed Sewers - $500,000

2004 PLAN AND BUDGET SUMMARY 281 K. SEWER MAINTENANCE FUND

DETAILED LISTING OF POSITION AND FULL-TIME EQUIVALENTS' CHANGES Specific ADDITIONAL positions (or eliminations) and associated full-time equivalents (FTEs) as follows:

O&M Non O&M Oper. Non-Oper. Positions FTEs FTEs Funding Funding Position Title Reason Environmental Decision Unit -1 -1.00 $-40,523 Engineering Drafting Tech IV Transferred to Infrastructure Services Division.

1.10 -0.10 Experience Adjustment Shift 0.10 FTE from capital to O&M.

Underground Decision Unit 0.41 -0.37 Miscellaneous Adjustment Shift 0.37 FTE from capital to O&M.

-1.00 $-81,134 Sewer Services District Manager District Manager will be unfunded until incumbent District Manager 1.00 $79,313 Sewer Services District Manager Sr Senior retires.

-2 Sewer Examiner I Unfunded positions.

-4 Sewer Laborer II Unneeded auxiliary. -4 Sewer Laborer I -11 0.51 -0.47 $-42,344 TOTAL

282 2004 PLAN AND BUDGET SUMMARY M. COUNTY DELINQUENT TAX FUND

EXECUTIVE SUMMARY

PURPOSE: To provide appropriation authority to purchase Milwaukee County delinquent property taxes.

STRATEGIC Provide a funding mechanism to purchase delinquent county property taxes without affecting ISSUES: the city’s tax levy.

INITIATIVES Continue efforts to return tax delinquent properties to the tax rolls and increase future city FOR 2004: revenue.

In accordance with Sec. 74.83 Wis. Stats., the City of The city purchases the county’s delinquent personal Milwaukee is authorized to enter into an agreement property and real estate taxes at the close of the cur- with Milwaukee County to purchase county delin- rent tax collection period each February. In addi- quent personal property taxes and real estate tax tion, the city also purchases the county’s real estate certificates. The initial agreement was executed on taxes that become delinquent during the installment December 18, 1987. collection cycle each month. In effect, the city is acquiring an asset, delinquent county property taxes The authority to collect county delinquent property receivable, and generating revenue by keeping the taxes enables the City Treasurer to consolidate the interest and penalty charges collected on the delin- collection of delinquent taxes. Consolidation of the quent taxes outstanding. Increased funding in 2004 delinquent taxes provides a more efficient and effec- reflects the Fund’s experience in prior years. tive tax collection administration by eliminating the burden of duplicate collections by the city and This account is the city’s mechanism to purchase the county. county’s delinquent property taxes. It is related to other delinquent tax collection efforts in the city debt budget and delinquent tax fund.

SUMMARY OF EXPENDITURES

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

Purchase of Delinquent County Taxes $8,531,457 $9,000,000 $9,500,000 $500,000 TOTAL $8,531,457 $9,000,000 $9,500,000 $500,000 SOURCE OF FUNDS

CHANGE 2002 2003 2004 2004 ADOPTED ACTUAL ADOPTED ADOPTED VERSUS EXPENDITURES BUDGET BUDGET 2003 ADOPTED

County Delinquent Taxes Collected $8,531,457 $9,000,000 $9,500,000 $500,000 TOTAL $8,531,457 $9,000,000 $9,500,000 $500,000

2004 PLAN AND BUDGET SUMMARY 283 II. BORROWING AUTHORIZATIONS GENERAL OBLIGATION BONDS OR SHORT-TERM NOTES

Reauthorization of 2003 New 2004 PURPOSE Authority (1)(2) Authority Total

A. GRANT AND AID PROJECTS - Specific Purposes Not Contemplated at the Time the Budget was Adopted

1. For Public Improvements Authorized under Section 62.11(5) for any of the Purposes Enumerated in Section 67.05(5)(b) 2. For Harbor Improvements Authorized under Section 30.30 3. For Library Improvements Authorized under Section 229.11 and 229.17 4. For Convention Complex and Exposition Center Improvements Authorized under Section 229.26 5. For Blight Elimination, Slum Clearance, Redevelopment, Community Development, and Urban Renewal Projects under Section 66.405 to 66.425, 66.43, 66.431, 66.4325, 66.435, and 66.46 6. For Developing Sites for Industry and Commerce to Expand the Tax Base as Authorized under Section 66.52 and 66.521 Subtotal - Grant and Aid Projects (3) $4,580,487 $300,000 $4,880,487

B. RENEWAL AND DEVELOPMENT PROJECTS

1. For Providing Financial Assistance to Blight Elimination, Slum Clearance, Redevelopment, and Urban Renewal Projects under Section 66.405 to 66.425, 66.43, 66.431, 66.4325, 66.435, and 66.46 MEDC Loan Program 0 0 0 Subtotal - Renewal and Development Projects $5,706,988 $2,700,000 $8,406,988

C. PUBLIC IMPROVEMENTS

1. Public Buildings for Housing Machinery and Equipment $38,041,719 $27,922,000 $65,963,719 2. Harbor Improvements 1,175,000 250,000 1,425,000 3. Parking Facility Improvement 1,094,000 1,305,900 2,399,900 4. Purchase of Sites for and Construction of Engine Houses, Fire Stations Reconstruction, Remodeling, Planning, Design, and Site Acquisition 3,239,900 5,195,000 8,434,900 5. Police Department Facility Construction 6,442,137 6,375,000 12,817,137 6. Bridge and Viaduct 4,767,000 5,650,809 10,417,809 7. Sewage Disposal - Sewer Improvement and Construction 3,169,000 4,000,000 7,169,000 8. Street Improvements - Street Improvement and Construction 23,600,706 6,701,641 30,302,347 9. Parks and Public Grounds 1,034,485 400,000 1,434,485 10. Library Improvements Authorized under Section 229.11 and 229.17 710,000 2,000,000 2,710,000 Subtotal - General Obligation Bonds or Short-Term Notes $93,561,422 $62,800,350 $156,361,772 (Sections A through C)

D. CONTINGENT BORROWING

Borrowing for a Public Purpose not Contemplated at the Time the Budget was Adopted Contingent Borrowing $0 $30,000,000 $30,000,000 Subtotal - General Obligation Bonds or Short-Term Notes $0 $30,000,000 $30,000,000

E. SCHOOL BOARD BORROWING

1 School Purposes (A) $10,580,000 $12,000,000 $22,580,000 2. For School Purposes authorized under Section 119.498 and/or 66.1333 0 200,000,000 200,000,000 Subtotal - General Obligation Bonds or Short-Term Notes $10,580,000 $212,000,000 $222,580,000

2004 PLAN AND BUDGET SUMMARY 285 II. BORROWING AUTHORIZATIONS

Reauthorization of 2003 New 2004 PURPOSE Authority (1)(2) Authority Total

F. BORROWING FOR SPECIAL ASSESSMENTS

1. To Finance Public Improvements in Anticipation of Special Assessments Levied Against Property 2. General City $19,196,326 $5,179,290 $24,375,616 Subtotal - General Obligation Bonds or Local Improvements Bonds $19,196,326 $5,179,290 $24,375,616

G. TAX INCREMENTAL DISTRICTS

1. For Paying Project Costs in Accordance with Project Plans for Tax Incremental Districts 2. For Providing Financial Assistance to Urban Renewal Projects Authorized under Section 66.405 $27,916,180 $19,000,000 $46,916,180 Subtotal - General Obligation Bonds, Short-Term Notes, $27,916,180 $19,000,000 $46,916,180 or Revenue Bonds

H. BORROWING FOR DELINQUENT TAXES $0 $15,000,000 $15,000,000 To Finance General City Purposes for Anticipated Delinquent Taxes Subtotal - General Obligation Bonds or Short-Term Notes $0 $15,000,000 $15,000,000

I. REVENUE ANTICIPATION BORROWING

To Borrow in Anticipation of Revenue in Accordance with Section 67.12 (1a) of the Wisconsin State Statutes $0 $300,000,000 $300,000,000 Subtotal - General Obligation Bonds or Short-Term Notes $0 $300,000,000 $300,000,000

J. WATER WORKS BORROWING $0 $0 $0 Water Works Mortgage Revenue Bonds or General Obligation Bonds $0 $0 $0

K. SEWER MAINTENANCE FUND BORROWING $3,500 $13,700,000 $13,703,500 Sewer Maintenance Fund Revenue Bonds or General Obligation Bonds $3,500 $13,700,000 $13,703,500 TOTAL BORROWING AUTHORIZATION $151,257,428 $657,679,640 $808,937,068 (Sections A through K)

(1) Reauthorization of prior unused borrowing authority: It is the intent of such reauthorization to expressly authorize the issuance and sale of such obligations (either bonds or notes) as set forth in this borrowing section of the budget, for the purposes and amounts enumerated herein. Such carryover borrowing (reauthorization of prior unused borrowing authority) is also reflected in the capital budget for informational purposes, but such amounts are excluded from the capital budget totals to avoid duplication.

(2) Bond authorizations included and approved by the Common Council in the preceding municipal budget and further approved by the adoption of a resolution of intent are herein continued and are deemed to be with the same force and effect as though they had been specifically enumerated, both as to purpose and amount in this municipal budget.

(3) The purpose of this borrowing is to provide funds in connection with projects undertaken by the city with federal or other financial assistance. Expenditures shall be made only after adoption of a Common Council resolution adopted in accordance with Common Council Resolution File 66-1893, as amended.

(A) Design plans for any alteration to building exteriors and interiors shall be reviewed and approved by the city.

286 2004 PLAN AND BUDGET SUMMARY III. CLARIFICATION OF INTENT

Employee Fringe Benefits The City Comptroller shall reflect such performance measure changes that are approved by the Budget Employee fringe benefit costs are allocated to and Policy Division in the establishment of the operating and capital budgets on an estimated basis necessary accounts for reporting purposes. for informational purposes only. Such estimated expenditures are 100% appropriation offset for Departmental Salary Appropriations operating budgets and 100% revenue offset for the capital budget to avoid any impact on the city's tax Department net salary and wage appropriations levy. Actual fringe benefit costs, such as health care reflect current wage rates and expenditures are benefits, life insurance, and pensions, are budgeted limited to these amounts. Funding of future salary separately in non-departmental accounts, which are increases from the Wages Supplement Fund will be funded from the property tax levy. restricted to wage settlements only. These transfers must be pre-approved by the Budget and Policy The amount included in each departmental (or Director. budgetary control unit) operating budget on the line entitled “Estimated Employee Fringe Benefits” is Footnotes subject to adjustment by unilateral action of the City Comptroller, during the budget year, if the actual Section 18-07-12 of the Milwaukee City Charter rate charged against salaries paid is at variance with states that the adoption of the budget shall be the the estimated rate used in calculating the budgeted authority for the expenditure by a department for amount. the purposes therein provided and of the amounts assigned to the department thereby and no further Changes to Performance Measures to Correct action by the Common Council shall be necessary to Possible Errors or Omissions authorize any department to make such expenditures. The City Attorney has advised that The Budget and Policy Division is authorized to footnotes contained in the line item budget are make or approve changes in performance measures informational only and not controlling over including additions, deletions, and modifications expenditures unless a corresponding resolution during the budget year. specifying the footnote’s intent is also adopted by the Common Council.

2004 PLAN AND BUDGET SUMMARY 287 POSITIONS ORDINANCE AND

SALARY ORDINANCE

The Positions Ordinance and the Salary Ordinance for the city may be obtained from the City Clerk's Office upon request. They therefore have not been included in this publication.

288 2004 PLAN AND BUDGET SUMMARY TAX LEVY TO RATE CONVERSION TABLE

Assessed Value Used in Conversion Calculation: $20,460,009,116

Tax Rate Tax Rate Per $1,000 of Per $1,000 of Assessed Assessed Valuation Levy Change Levy Change Valuation

$0.01 $204,600 $5,000 $0.00 $0.05 $1,023,000 $10,000 $0.00 $0.10 $2,046,001 $50,000 $0.00 $0.25 $5,115,002 $100,000 $0.00 $0.50 $10,230,005 $500,000 $0.02 $1.00 $20,460,009 $1,000,000 $0.05

Formula for deriving tax rate per $1,000 of assessed value from known assessed value and levy:

TAX RATE = TAX LEVY ASSESSED VALUE/1,000 Formula for deriving levy from known rate and assessed value: TAX LEVY = TAX RATE X (ASSESSED VALUE / 1,000) Formula for deriving assessed value from known rate and levy: ASSESSED VALUE = (TAX LEVY / TAX RATE) X 1,000 NOTE: Results are approximate due to rounding.

2004 PLAN AND BUDGET SUMMARY 289 BASIS OF BUDGETING

The city’s budgetary policies generally conform to used for the city’s proprietary funds (enterprise and Generally Accepted Accounting Principles (GAAP) internal service agencies). The city prepares finan- applicable to governmental units. The city’s gov- cial statements annually in conformity with GAAP ernmental funds (general, special revenue, debt for governmental entities which are audited by an service, capital projects) use the modified accrual independent certified public accounting firm. The basis. Under the modified accrual basis, revenues city’s Comprehensive Annual Financial Report are recorded when both available and measurable. (CAFR) is generally available about four months af- Certain fines and forfeitures, however, are recorded ter December 31. The city’s most recent CAFR for when received as they are not subject to accrual. the fiscal year ended December 31, 2002 was audited Expenditures are recognized when the related liabil- by the accounting firm KPMG Peat Marwick LLP ity is incurred. The accrual basis of accounting is and is available for review.

UNRESERVED FUND BALANCE

The city utilizes two separate reserve funds. One reserve fund, the Tax Stabilization Fund Table 1 (TSF) is associated with the general fund balance. The other reserve fund, the Public Unreserved Fund Balance (In Thousands) Debt Amortization Fund (PDAF), is related TSF Unreserved Balance PDAF Unsegregated Balance to the debt service fund. Each reserve fund 2001 Year End Balance $29,122 2001 Year End Balance $44,193 was created via state statute and city ordi- 2003 Budget Withdraw 9,300 2003 Utilization 5,000 nance and each is restricted in the manner in Subtotal $19,822 Subtotal $39,193 which funds are used. Table 1 shows the 2002 Regeneration 13,923 2002 Earnings 5,414 level of unreserved fund balances in each of Available for 2004 Purposes $33,745 Available for 2004 Purposes $44,607 the funds. There are additional funds in the 2004 Withdraw $16,870 2004 Utilization $4,000 city fund balance; however, these funds are Remaining Balance Prior Remaining Balance Prior to 2003 Regeneration $16,875 to 2003 Earnings $40,607 reserved for other uses. Est. 2003 Regeneration $13,370 Est. 2003 Earnings $4,000 Est. Available for 2005 $30,245 Est. Available for 2005 $44,607 As Table 1 indicates, the PDAF withdrawal Total Unreserved TSF and Unsegregated PDAF Balance for 2004 Purposes $78,352 in 2004 will be $4 million, which is $1 million Total Unreserved TSF and Unsegregated PDAF Balance Used in 2004 $20,870 less than the 2003 withdrawal of $5 million. Total Unreserved TSF and Unsegregated PDAF Balance Used in 2003 $14,300 It is expected that the balance in the PDAF Change in Reserves Used in 2004 Compared to 2003 $6,570 will remain the same for 2005 purposes. The Est. Total Unreserved TSF and Unsegregated PDAF Balance for 2005 Purposes $74,852 TSF withdrawal will increase by $7.6 million to $16.9 million. The $16.9 million withdrawal will allow the city to meet its informal policy of maintaining the TSF balance at 5% of general fund expenditures. A withdraw that allows general fund expenditures. the balance to fall below the minimum will require actions in future years to replenish the amount in the As a part of the 2002 budget, a TSF policy was pro- TSF above the minimum. Other intended changes posed. The policy will require a minimum TSF bal- would set a mid-point and maximum TSF balance. ance that is equal to 5% of the three year average

290 2004 PLAN AND BUDGET SUMMARY